Yes, this is called a Lis Pendens and it can place a lien against your property. You may need to file a small claims case against them in regards to this. Review you contract very well and make sure that no clause is in there stating that you can not do this. You may also want to contact your local Better Business Bureau and file a complaint on them. They may have a history of doing this to others and it will also depend on why you terminated the contract and fired them.
http://www.escrowhelp.com/articles/19990924.html
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