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

Adler Law, A P.C. • April 20, 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 lien, bond requirements, mechanic’s lien waivers, and the process for enforcing a mechanic’s lien. The first three topics allow homeowners or contractors to get around a lien that is in place, which helps avoid the potential for enforcing the lien altogether.

Perfecting a Mechanic’s Lien

A mechanic’s lien is only valid if the contractor or other labor-provider follows very specific requirements. First, a lien must be recorded with the county where the property is located. This process must be done within 90 days of the completion date. If the owner files a valid notice of competition, however, a direct contractor only has 60 days to file its lien. Indirect contractors have just 30 days to file a lien. Once a project is complete, it’s often a good idea to file a notice of completion to cut off the right to file a lien in many circumstances.

Recording a lien requires that the contractor provide specific information to the county recorder, including:

A statement of the amount owed
A description of the project
The name of the owner of the property
The name of the person/entity who provided the work and their address
Information about the property (usually address, but also can be the parcel number)
Proof of service of the claim to the property owner
A statement that includes required language in the statute
Only if the lien contains all of this information will it be considered valid under California law. When a mechanic’s lien does not include this information, it can be completely set aside and ignored.

Required Bonds

A bond is a written agreement that states that someone will perform a certain act. Then, if they do not complete that act, then they have to pay a certain amount of money, or they lose rights to money that has already been deposited. In the context of a mechanic’s lien, a contractor or homeowner can use a bond to have a lien removed from their property once it is already in place. The property owner or another contractor can file a release bond that is at least 125% of the total lien claimed.

Lien Waivers

Property owners and general contractors may be able to get lien waivers from subcontractors or those who provide material for a project. A lien waiver essentially states that if the individual or company is paid in full, then they will not put a lien on the property. California law requires particular lien waiver and release language be used for this process. A form is available for this purpose.

Getting Rid of a Mechanic’s Lien: Enforcement or Expungement

When a valid mechanic’s lien is in place, there are really only two ways to force action on the lien. Of course, if the property owner pays the lien amount, the contractor is supposed to voluntarily lift the lien. Otherwise, you will likely need to take other action. To enforce a mechanic’s lien, a contractor must start a foreclosure process on the property. This must be done within 90 days of recording the lien.

Alternatively, a homeowner could also petition a court to release a lien if the contractor has not sued on it or it may be invalid. Before doing that, however, a homeowner must first demand that the lien be lifted or withdrawn. This is sometimes necessary if the lien amount has been paid but has not yet been removed from the property.

Alder Law is prepared to address all of your questions and concerns about mechanic’s liens in California. Give us a call today for more information or to schedule an appointment.

What You Need to Know About Business Litigation Attorneys in California

By Robert Adler • September 29, 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. • June 2, 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. • July 20, 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. • June 20, 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. • May 20, 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 I – Timing and Notice

By Adler Law, A P.C. • March 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… The post The Basics of California Mechanic’s Liens: Part I – Timing and Notice appeared first on Adler Law, A P.C..
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