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One of the most prevalent problems encountered by Contractors is how to get paid for the work they have done. In California, anyone who does work on, or supplies materials for, a construction project has the right to get paid and may use a Mechanics Lien to do so. This is a very powerful tool that comes directly from the California Constitution. However, there are strict deadlines and intricacies that need to be followed for you to be able to collect on a Mechanics Lien. At Ghassemian Law Group, we are experts in problems faced by contractors and suppliers, and we help our clients when they have such issues. Our experienced team is ready to assist you at (949) 436-2785.
A Mechanics Lien creates a claim on the title of a property that, if followed through legal channels, may become a lien on the property. Such a lien does not allow a property owner to refinance, or get loans on, his or her property, and in certain instances can result in a foreclosure of the lien and forcing a property owner to pay the amount of the lien to the contractor or sell the property to pay off the lien.
| Action Required | Contractors | Subcontractors and Material Suppliers |
| A Mechanics Lien creates a claim on the title of a property that, if followed through legal channels, may become a lien on the property. Such a lien does not allow a property owner to refinance, or get loans on, his or her property, and in certain instances can result in a foreclosure of the lien and forcing a property owner to pay the amount of the lien to the contractor or sell the property to pay off the lien. | If you are a contractor with a direct contract with the Owner, you need to give notice of a Mechanics Lien to all those that have an interest in property. So, if you are contracting with a tenant of the property, you should give notice to both the tenant and the owner. This notice is given after you file the Mechanics Lien by properly serving it on all parties. | Notice is required to the contractor that hired you and the owner. But because the owner may not even know you are doing work or supplying materials to the property, in California, you must also serve a preliminary notice within 20 days from the start of work or date you supply materials. This notice has to be given to the direct contractor as well as the owner of the property and lender of a mortgage loan on the property. This way the owner and the contractor know that you will file a claim of lien if you are not paid. This is a statutory notice which was mandated by statute and should have a certain format. You can get a template for this Notice from your attorney or on the internet. |
Contractors: If you are a contractor with a direct contract with the owner, you need to give notice of a Mechanics Lien to all those that have an interest in property. So, if you are contracting with a tenant of the property, you should give notice to both the tenant and the owner. This notice is given after you file the Mechanics Lien by properly serving it on all parties.
Subcontractors and Material Suppliers: Notice is required to the contractor that hired you and the owner. But because the owner may not even know you are doing work or supplying materials to the property, in California, you must also serve a preliminary notice within 20 days from the start of work or date you supply materials. This notice has to be given to the direct contractor as well as the owner of the property and lender of a mortgage loan on the property. This way the owner and the contractor know that you will file a claim of lien if you are not paid. This is a statutory notice which was mandated by statute and should have a certain format. You can get a template for this Notice from your attorney or on the internet.
In California, a contractor, subcontractor or material supplier has 90 days from the last day they performed work on the property to file a claim of lien, and in some instances if an Owner files a notice of Completion, this time is cut further. So if you do not receive payment for work you have done, you need to look into recording a claim of Mechanics Lien on the property of the owner and make sure it is recorded with the county recorder’s office in the county where the property is located.
Even if you record a Mechanics Lien, it is only a claim of lien and unless you file a lawsuit within 90 days of recording the lien, you lose your lien rights and the lien becomes invalid.
If you receive payment or do not file a lawsuit within 90 days, you must release the Mechanics Lien or an owner can go to court and ask the court for it to be released in which case, you will have to pay their attorneys’ fees and costs. Just like a lien, a release has to also be recorded in the county recorder’s office to remove the lien from the title of the property in question.
Mechanics Liens laws are complex and if you are a contractor seeking payment for your work, Ghassemian Law Group is here to help. Our team of experienced attorneys focuses on construction law and has a deep understanding of California’s Mechanics Lien laws.
Contact us today at (949) 436-2785 to schedule a consultation. Let us help you secure your legal right to payment for work you have performed.
For more information on construction law and other legal matters, visit our blog page at https://glgattorneys.com/blog/.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Consult with a qualified attorney for advice regarding your specific situation.
This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.
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