The Basics of California Mechanic’s Liens: Part I – Timing and Notice

Adler Law, A P.C. • Mar 20, 2019

When someone does work on a house to improve it, they have special rights to be able to collect the value of that work in California. They can file what is called a “mechanic’s lien” on the property where the work occurred. Mechanic’s liens are valuable because they encourage homeowners to pay for improvements to their home. A lien on a property will generally have to be addressed before the house is sold or refinanced, which increases the likelihood that the contractor will get paid. Liens are also available on commercial properties as well.

A mechanic’s lien gives you the right to start a foreclosure action on the property if the lien goes unpaid after your demand for payment. That makes mechanic’s lien a very useful debt collection tool, sometimes even more so than a judgment after a lawsuit.

In this two-part series, we detail some of the need-to-know information for homeowners and contractors about mechanic’s liens in California.

The Basics: Who Can Assert a Mechanic’s Lien?

Any person who provides work to improve a property can file a mechanic’s lien. The individuals or entities who commonly assert mechanic’s liens include:

Contractors
Subcontractors
Material suppliers
Equipment lessors
Design professionals
Laborers
The lien attaches to the property that was improved. An “improvement” includes any construction or alteration of the property. It can even include things like planting, leveling, and grading in addition to work directly on a home or another property.

Notice and Timing Requirements

In 2012, the California legislature revised the mechanic’s lien statute, and many of those revisions dealt with the timing and notice requirements for mechanic’s liens.

For instance, the definition of “completion” of work. The completion date dictates the deadline for when a mechanic’s lien should be filed. Today, the completion date is when the contractor is completely finished with all work or where labor stops for at least 60 consecutive days (or 30 days if the contractor files a notice of cessation). Previously, the date was whenever the homeowner accepted the work, but that is no longer a requirement under the newly revised law. Notices of completion must also be recorded within 15 days after the actual competition of the project.

Additionally, contractors must also file a notice when they start work as well. This notice is often referred to as the “Preliminary 20-Day Notice,” although the official name has changed since the 2012 law changes (but the 20-day time limit still applies). This notice is required to assert a mechanic’s lien. However, this notice is only required to be provided to the property owner if the contractor does not have direct contact with that person, which means that general contractors often do not need to provide this type of notice. Nonetheless, it must be provided to construction lenders and reputed construction lenders, if there are any.

Next time, we will discuss bonds, waivers, and enforcing a mechanic’s lien once it is in place. In the meantime, if you have questions about mechanic’s liens, whether you want to assert one or you need to fight one, give the team at Alder Law a call to discuss your rights and options.

What You Need to Know About Business Litigation Attorneys in California

By Robert Adler • 29 Sep, 2023
Running a business in California can be tricky, especially when there are legal issues at hand. Whether you're facing a breach of contract or a dispute with a partner, it's important to have a business litigation attorney on your side. In this blog post, we'll discuss what business litigation attorneys do and how they can help you protect your business interests in California.  1. Understanding Business Litigation Attorneys Business litigation attorneys specialize in resolving legal disputes that arise in the business world. They represent individuals, partnerships, and corporations in court and handle cases related to contract disputes, intellectual property issues, employment disputes, and other similar matters. These attorneys work to protect their clients' business interests, reduce their legal exposure, and minimize the impact of litigation on their operations. 2. Common Types of Business Litigation There are several types of business litigation that can arise in California, including breach of contract, partnership disputes, shareholder disputes, intellectual property disputes, and employment litigation. A business litigation attorney can advise you on the best course of action to take based on the specific circumstances of your case. They can help you evaluate your legal options, negotiate settlements, and represent you in court if necessary. 3. Benefits of Hiring a Business Litigation Attorney One of the main benefits of hiring a business litigation attorney is that they can provide you with legal advice that is tailored to your specific needs. They can help you understand the legal process and the potential outcomes of your case. They can also represent you in negotiations and in court, which can be critical in achieving a favorable outcome. Additionally, having a business litigation attorney on your side can help minimize the impact of litigation on your business and reduce your legal exposure. 4. Choosing the Right Business Litigation Attorney When choosing a business litigation attorney in California, it's important to look for an attorney who has experience in your specific area of need. You'll also want to look for an attorney who has a track record of success and who has a good reputation in the legal community. Be sure to ask for references and do your own research before selecting an attorney. It's also important to choose an attorney who you feel comfortable working with and who can communicate effectively with you throughout the legal process. 5. Final Thoughts Business litigation can be complex and daunting, but with the right attorney on your side, you can protect your business interests and achieve a favorable outcome. Whether you're facing a contract dispute or an employment lawsuit, a business litigation attorney can provide you with the legal expertise you need to make informed decisions about your case. So if you're a business owner in California facing a legal issue, don't hesitate to reach out to a business litigation attorney for help. A business litigation attorney can be a valuable asset to any business owner in California. By understanding what these attorneys do and what benefits they offer, you can make an informed decision about whether to hire one for your legal needs. Remember to choose an attorney who has experience in your specific area of need and who you feel comfortable working with. With the right attorney on your side, you can protect your business interests and minimize the impact of litigation on your operations.

3 Common Business Disputes That Can Lead to Litigation

By Adler Law, A P.C. • 02 Jun, 2023
Have you ever wondered how a simple disagreement can escalate into a lawsuit? In this blog post, I will share some insights from my experience as an attorney and explain how everyday disputes can lead to litigation. Litigation is the process of resolving a legal dispute through the court system. It can be costly, time-consuming,… The post 3 Common Business Disputes That Can Lead to Litigation appeared first on Adler Law, A P.C..

3 Red Flags To Watch For When Hiring A Construction Contractor

By Adler Law, A P.C. • 20 Jul, 2019
When you hire a contractor, you put a lot of trust in him or her to do a good job. You rely on their expertise to ensure that the job is done right and will last for years to come. Many people do not have enough experience or know-how to realize when a job is… The post 3 Red Flags To Watch For When Hiring A Construction Contractor appeared first on Adler Law, A P.C..

“For Cause” Contract Termination: An Overview

By Adler Law, A P.C. • 20 Jun, 2019
Most contracts, particularly construction contracts, will come to an end because a project has been completed successfully. However, there are situations where the contract needs to end early for a variety of reasons. There could be a dispute or perhaps the job was simply canceled. In many situations, your construction contract will include a termination… The post “For Cause” Contract Termination: An Overview appeared first on Adler Law, A P.C..

How Mediation Can Help Resolve Construction Defect Disputes

By Adler Law, A P.C. • 20 May, 2019
The term “mediation” refers to a private and informal dispute resolution process that allows you to stay out of court and resolve your contested claim. You use a neutral third-party, a mediator, as a “go-between” to work with the other side to resolve your dispute. Sometimes having someone who has no stake in the outcome… The post How Mediation Can Help Resolve Construction Defect Disputes appeared first on Adler Law, A P.C..

The Basics of California Mechanic’s Liens: Part II – Perfection, Bonds, Waivers, and Enforcement

By Adler Law, A P.C. • 20 Apr, 2019
Last month, we discussed some of the basics of mechanic’s liens in California, including the timing and notice requirements that must be followed under the 2012 changes to the law. You can read that post here. This month, we want to dig a little deeper into additional requirements for mechanic’s liens, including perfecting a mechanic’s… The post The Basics of California Mechanic’s Liens: Part II – Perfection, Bonds, Waivers, and Enforcement appeared first on Adler Law, A P.C..
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