The State of California Procedure for Mechanics Liens
According to the California Department of Consumer Affairs: Contractors State License Board, contractors, subcontractors, material suppliers, and laborers have the right to file a mechanics lien on a person’s property if they do not get paid. A mechanics lien is essentially a legal tool that allows a construction company or laborer with a security interest in the property to work towards obtaining compensation.
It is important to understand the process of a mechanics lien to avoid unnecessary financial and legal pitfalls. The following information provides a brief insight on the California procedure for mechanics liens.
General Overview on a Mechanics Lien
Through a mechanics lien filed with the county recorder’s office, a hold can be placed on a homeowner’s property for unpaid construction services. When the matter continues to be unpaid, a foreclosure action can commence, which will force the sale of the property in return for damages.
Liens can lead to a variety of problems, including:
- Foreclosure,
- Making double payments for a service that has already been paid; and
- The lien being recorded on the property title.
Who Can File a Mechanics Lien?
Generally, any individual who provides the materials or services during a construction project has the right to pursue a mechanics lien. This can include engineers, project managers, designers, and other professionals. It is important to note, however, that the process to file a mechanics lien can vary depending on the party pursuing the lien.
Submitting a Notice of Right to Lien
To protect lien rights, a notice of the right to file a mechanics lien should be served. This is typically referred to as a Preliminary Notice, and it will need to be served on the property owner or general contractor. The notice should be served within 20 days since the project began or materials to the project were supplied. If the deadline has been missed, a notice can still be served, but only reparations for the money that should have been earned during the initial 20 days can be pursued.
Furthermore, the notice can be served through certified mail or by personally serving the parties, but a proof of service must be obtained so that it can be submitted in the affidavit. In addition to the proof of service, a description of the work completed or supplies provided should also be included in the notice. An estimated total amount for the work or goods provided must also be included. The language in the notice should match the statement under the California Civil Code §8202 (3).
Filing and Serving the Lien
A mechanics lien should contain the property owner’s name, an accurate description of the property, the work performed, the hiring party, and the exact amount money owed. According to the mechanics lien law, the lien should be filed within 90 days from the last day work was performed at the site or goods were supplied. If, however, the property owner has filed a cessation or notice of completion that indicates the project has been halted, then the lien should be filed within 60 days.
Obtain the Support of an Experienced Attorney
Even when a foreclosure is not considered, it is important to go through the entire mechanics lien process. Should circumstances change, due diligence will ensure a strong position against potential adversaries. Obtain the support of a skilled attorney to discuss your legal options.
The attorneys at the Knez Law Group are highly experienced in construction litigation, including mechanics liens. Consider obtaining the support of the Knez Law Group to protect your rights and interests when facing a mechanics lien. Contact the firm today for a free initial consultation.
Andrew J. Knez earned his Bachelor of Arts degrees in Political Science and Criminal Justice from California State University, Fullerton. During his college years, he was a member of the Pi Kappa Phi Fraternity and interned at the College Legal Clinic, where he assisted underprivileged communities in obtaining affordable legal services. Mr. Knez credits this experience with fostering his appreciation for the law and its positive impact on society. Additionally, during college, Mr. Knez worked as a paralegal, gaining hands-on experience in civil litigation. Learn more here.