Filing a Mechanic's Lien In California

One of the most common grievances contractors have against clients is nonpayment. As contractors, we always cross our fingers hoping the client we are going to work with has integrity and decency, however that is not always the case. One day Sam comes along and says “Hi contractor Jim, I would love to work with you, I pay on time and with cash”. Contractor Jim’s eyes light up, a client he can’t refuse. Then, as the job is progressing Sam turns into Hide and Seek Sam, instead of paying Jim he hides, and avoids Jim. Jim, now out of money, with no written contract decides to figure out what his repercussions are so he Google’s “How to File a Mechanic’s Lien in California”.

A list of things comes up, unorganized and befuddled at the trauma Sneaky Sam has caused, Jim slowly and methodically sorts through the process of filing a mechanics Lien. Jim has done all the research so you don’t have to, below are the ways to file a mechanic's lien:

First, If you happened to be of the unfortunate bunch who encounters Hide and Seek Sam, don’t panic, he will pay sooner or later. It’s not your fault Sam’s moral compass was formed in the depths of hell, nor is it your fault that Sam manipulates and blames, just to get his way. Don’t allow Sam to affect your wellbeing, file the lien and be free of him forever:

1. Preliminary Notice: Though the state of California has its problem’s they make the lien process is not too terrible, even if you don’t have a written contract, you can still file a lien. Within 20 days of starting a project, the contractor must provide a preliminary notice, this notice must include information about the work performed and the amount owed. Even though a preliminary notice is technically required, there are circumstances where a contractor can file a lien without the notice. Click here for the steps to file a Preliminary Notice

2. The Claim of Lien form in California is officially called a "Mechanic's Lien" form and can be obtained from the California Courts website or from a legal document preparation service. Click here to be taken to the steps for filing a lien.

3. Time limits: A lien must be filed within 90 days of completion for a private project, and 60 days of completion for a public works project. Click here for more on time restraints.

4. Amount: The lien must include the total amount owed as well as any interest or penalties.

5. Description: The lien must include the work performed, materials, and a description of the property.

6. Service: the contractor must serve a copy of the lien on the property owner, and any other parties involved in the construction project within a certain time frame. Click here for Preliminary Notice service and here for Claim of Lien service.

7. Release: If the contractor is paid in full, they must release the lien in a certain time frame. Click here for more on lien release.

8. Enforcement: If payment is not received, the contractor may need to take additional steps to enforce the lien, such as filing a lawsuit or initiating a foreclosure proceeding. Click here to learn more about your legal repercussion options, and also the conclusion to Contractor Jim's story.

Preliminary Notice

In California, a preliminary notice is an important document that must be filed by a contractor, subcontractor, or supplier who intends to file a mechanics lien against a property owner. Here are the steps to file a preliminary notice for a mechanics lien in California:

1. Identify the correct party to receive the preliminary notice. In California, the preliminary notice must be sent to the property owner, the construction lender, and the general contractor.

2. Obtain the necessary information to include in the preliminary notice, such as the name and address of the property owner, the legal property description, the name and address of the general contractor, and the nature of the work or materials provided.

3. Prepare the preliminary notice form. California requires a specific form to be used for the preliminary notice, which can be found on the California State Contractor's Licensing Board website.

4. Serve the preliminary notice on the required parties. In California, the preliminary notice can be served by certified mail, personal delivery, or overnight delivery.

5. Keep a record of the service. It's important to keep a copy of the preliminary notice and proof of service in case there are any disputes later on.

It's important to note that the deadline for filing a preliminary notice in California varies depending on the type of project and the role of the party filing the notice. In general, the preliminary notice must be filed within 20 days of the start of the project, but there are some exceptions. It's always best to consult with a construction attorney to ensure compliance with all of California's mechanics lien laws.

Preliminary Notice Form

In California, the preliminary notice form for a mechanics lien is called the "Preliminary 20-Day Notice" or "Preliminary Notice." The form is also known as "Prelien Notice" or "Notice to Owner."

The California State Contractor's Licensing Board provides a sample form that can be used to create a preliminary notice. The form can be found on the CSLB website or obtained from a legal document service.

The information required on the preliminary notice form in California includes:

1. The name, address, and contact information of the person providing the preliminary notice.

2. The name and address of the property owner.

3. The name and address of the prime contractor.

4. A description of the work or materials being provided.

5. The estimated total contract amount.

6. A legal description of the property, including the address or assessor's parcel number.

7. A statement that the claimant has the right to file a mechanics lien if they are not paid for their work or materials.

8. The date the preliminary notice was served.

It's important to note that the form and content of the preliminary notice must comply with California law, and any errors or omissions could affect the validity of the notice. If in doubt, it's always best to consult with a construction attorney to ensure compliance with all of California's mechanics lien laws.

Serving a Preliminary Notice

In California, a preliminary notice for a mechanics lien must be served on specific parties in order to be effective. Here are the steps for serving a preliminary notice:

1. Identify the required parties. In California, the preliminary notice must be served on the property owner, the construction lender (if any), and the prime contractor.

2. Choose a method of service. The preliminary notice can be served by personal delivery, certified mail, or overnight delivery.

3. Obtain proof of service. You should keep a copy of the preliminary notice and obtain proof of service, such as a signed and dated acknowledgment of receipt or a certificate of mailing.

4. Serve the preliminary notice. Here are the specific requirements for each method of service:

A. Personal delivery. You can serve the preliminary notice by handing a copy to the recipient or leaving a copy at their address. You should keep a record of the date and time of service, as well as the name of the person who received the notice (if applicable).

B. Certified mail. You can serve the preliminary notice by sending a copy by certified mail, return receipt requested, to the recipient's address. You should keep a copy of the return receipt, as well as any other relevant mailing documentation.

C. Overnight delivery. You can serve the preliminary notice by sending a copy by overnight delivery to the recipient's address. You should keep a record of the delivery date and time, as well as any other relevant shipping documentation.

8. File proof of service. It's a good idea to file proof of service with the county recorder's office in the county where the property is located. This can help establish a clear record of the service and avoid any disputes later on.

It's important to note that the time limits for serving a preliminary notice in California are strict, and failing to serve the notice properly can affect your ability to file a mechanics lien. If in doubt, it's always best to consult with a construction attorney to ensure compliance with all of California's mechanics lien.

Claim of Lien Form

The Claim of Lien form in California is officially called a "Mechanic's Lien" form and can be obtained from the California Courts website or from a legal document preparation service. Here are the basic steps and information needed to fill out the form:

1. Identify the parties: The first section of the form requires you to provide your name and address as the person filing the lien. You will also need to identify the property owner and the general contractor or party who hired you.

2. Describe the property: The second section of the form requires you to provide a legal description of the property that you are filing the lien against. This should include the street address and other identifying information, such as the Assessor's Parcel Number (APN).

3. Detail the work and materials: The third section of the form requires you to provide a detailed description of the work that you performed on the property, as well as a list of the materials that you provided. Be as specific as possible in describing the work and materials to avoid any potential challenges or disputes.

4. Calculate the amount owed: The fourth section of the form requires you to calculate the total amount that you are owed for the work and materials. This should include all unpaid invoices and any interest or other charges that may apply.

5. Sign and notarize the form: The final section of the form requires you to sign and date the form, and have it notarized by a notary public.

Once you have completed the Claim of Lien form, you will need to file it with the County Recorder's office in the county where the property is located, and serve a copy of the lien on the property owner and any other parties involved in the project. Be sure to follow all of the necessary procedures and deadlines for filing and serving the lien to ensure that it is valid and enforceable.

Serving Claim of Lien Form

In California, after you have filed a Claim of Lien form with the County Recorder's office, you must serve a copy of the lien on the property owner and any other parties involved in the construction project. Here are the steps for serving a Claim of Lien form in California:

1. Determine who to serve: The California Civil Code requires that you serve a copy of the lien on the property owner, the construction lender (if there is one), and the general contractor (if you are a subcontractor). You may also choose to serve a copy on any other parties who may have an interest in the property, such as other subcontractors or suppliers.

2. Choose a method of service: There are several methods of service that are recognized under California law, including personal service, certified mail with return receipt requested, or substituted service. Personal service involves delivering the lien directly to the person being served. Certified mail with return receipt requested involves mailing the lien to the person being served, and receiving a signed receipt showing that the lien was received. Substituted service involves leaving the lien with someone at the property who is over the age of 18 and mailing a copy of the lien to the person being served.

3. Complete the proof of service: After you have served the lien, you must complete a proof of service form to show that the lien was properly served. The proof of service should include the name of the person who was served, the date and method of service, and any other relevant information. Be sure to sign and date the proof of service form.

4. File the proof of service: After completing the proof of service, you should file it with the County Recorder's office where you filed the Claim of Lien. This will provide evidence that you have properly served the lien.

It's important to follow all of the necessary procedures and deadlines for serving the Claim of Lien in California to ensure that the lien is valid and enforceable. If you have any questions or concerns about serving a Claim of Lien, you may want to consult with an attorney or a qualified legal document preparation service.

Time Limits

In California, the time limits for filing a mechanics lien are determined by the type of project and the role of the party filing the lien. Here are the general time limits:

1. For general contractors: A general contractor must file a mechanics lien within 90 days after completing the project or within 60 days after the owner records a notice of completion or cessation, whichever is earlier.

2. For subcontractors and suppliers: Subcontractors and suppliers must file a mechanics lien within 90 days after they have completed their work or within 60 days after the owner records a notice of completion or cessation, whichever is earlier. If the owner has not recorded a notice of completion or cessation, then subcontractors and suppliers have up to 90 days after the project is completed to file a mechanics lien.

3. For design professionals: Architects, engineers, and other design professionals must file a mechanics lien within 90 days after the completion of their work or within 60 days after the owner records a notice of completion or cessation, whichever is earlier.

It's important to note that the deadlines for filing a mechanics lien in California are strict and cannot be extended. Failing to file a mechanics lien within the appropriate time frame can result in the loss of your lien rights. Additionally, it's always best to consult with a construction attorney to ensure compliance with all of California's mechanics lien laws.

Lien Release

In California, releasing a mechanics lien requires a properly executed release of lien form. The release of lien form should include the following information:

Identification of the lien: The release of lien should identify the lien being released by including the recording information for the original lien, such as the recording date, instrument number, and the name of the owner of the property.

Signature of the lien claimant: The lien claimant, or their authorized representative, must sign the release of lien form.

Acknowledgment: The release of lien must be acknowledged before a notary public or other authorized official.

Recording: The release of lien must be recorded in the same county where the original lien was recorded.

Once the release of lien has been properly executed and recorded, the lien claimant is no longer entitled to any lien rights on the property. The property owner can then provide a copy of the release of lien to any lenders, contractors, or other parties involved in the project as proof that the lien has been released.

It's important to note that releasing a mechanics lien does not release any other claims or disputes that may exist between the parties involved in the project. It only releases the lien claimant's rights to the property. If there are any other disputes or claims that need to be resolved, it may be necessary to pursue legal action or other remedies.

If you have any questions or concerns about releasing a mechanics lien in California, you may want to consult with an attorney.