Filing a mechanics lien in California is an essential legal process that helps contractors, subcontractors, and suppliers secure payment for their work on construction projects. Given the complexities of construction law, understanding the proper steps to file and enforce a mechanics lien is crucial.
A properly filed lien can prevent non-payment and provide significant leverage in disputes. However, missing deadlines or failing to follow procedures can render the lien invalid, making it important to approach the process correctly. This guide will walk you through the key aspects of filing a mechanics lien in California, including eligibility, deadlines, and enforcement procedures.
What Is the Process for Enforcing a Mechanics Lien in California?
A mechanics lien is a powerful legal tool that allows contractors, subcontractors, suppliers, and other construction professionals to secure payment for their work. Enforcing a mechanics lien in California requires careful adherence to specific legal steps. The process generally includes:
- Serve a Preliminary Notice – Before filing a mechanics lien, contractors and suppliers (except those working directly with the property owner) must serve a 20-day preliminary notice to preserve their right to file a lien.
- File the Mechanics Lien – If payment is not received, the claimant must file a mechanics lien with the county recorder’s office where the property is located. This must be done within 90 days of project completion or 60 days after a Notice of Completion is recorded.
- Serve a Copy of the Lien – After filing, a copy of the lien must be sent to the property owner.
- Enforce the Lien – If payment is still not made, the claimant must file a lawsuit to enforce the lien within 90 days of filing the lien. Failure to do so results in the lien becoming invalid.
- Foreclose on the Property – If successful, the court may allow foreclosure on the property to recover unpaid amounts.
What Types of Projects Are Eligible for a Mechanics Lien in California?
Mechanics lien California can be filed on private construction projects but not on public projects (which require a different process, such as bond claims). Eligible projects include:
- Residential Construction – Single-family homes, apartments, and condominiums.
- Commercial Construction – Office buildings, retail centers, and warehouses.
- Industrial Construction – Factories, manufacturing plants, and refineries.
- Remodeling and Renovation – Improvements to existing structures that increase their value.
- Landscaping and Site Work – Work related to grading, excavation, and landscaping.
How Does a Mechanics Lien Protect Unpaid Contractors and Suppliers?
A California mechanics lien provides unpaid contractors and suppliers with a legal claim against the property they worked on. This protection:
- Secures Payment – The lien prevents the owner from selling or refinancing the property without first resolving the debt.
- Forces Payment Negotiations – Property owners often prioritize paying lienholders to clear the title.
- Creates Legal Leverage – If necessary, lienholders can pursue foreclosure to recover unpaid amounts.
- Protects Against Non-Payment – ensures that even if the general contractor goes bankrupt, subcontractors and suppliers still have a legal avenue for payment.
Is a Mechanics Lien the Same as a Construction Lien?
A mechanics lien is a type of construction lien, but the terms are often used interchangeably. In California, “mechanics lien” is the proper legal term, and it applies specifically to those who provide labor, materials, or services for a construction project.
Does a Mechanics Lien Guarantee Payment?
A mechanics lien in California is a legal tool that guarantees payment to builders, contractors, subcontractors, laborers, and suppliers by placing a claim against the property. It ensures they are compensated when the project owner or other responsible parties fail to pay for the services rendered or materials provided.
How Soon Must a Mechanics Lien Be Filed After Completing the Work?
Timing is crucial when filing a mechanics lien in California:
- For projects without a Notice of Completion: The lien must be filed within 90 days of project completion.
- For projects with a Notice of Completion: The deadline shortens to 60 days for general contractors and 30 days for subcontractors and suppliers.
If a lien is filed after the deadline, it is considered invalid and unenforceable.
Do You Need to Provide a Preliminary Notice Before Filing a Mechanics Lien?
Yes, in most cases, a 20-day preliminary notice California is required to preserve lien rights. The notice must be served on the property owner, general contractor, and lender (if applicable) within 20 days of starting work. Failure to provide this notice may result in the inability to file a valid lien.
What Happens if a Mechanics Lien Is Filed Incorrectly?
If a mechanics lien is filed incorrectly, it may be deemed invalid, stripping the lienholder of their right to collect payment through the property. Common filing mistakes—such as inaccurate information, missed deadlines, or failure to follow legal procedures—can lead to the lien’s removal. In such cases, the property owner can petition the court to have the lien dismissed and, if the filing is considered frivolous, may even seek reimbursement for legal fees from the claimant.
Key Consequences of an Incorrectly Filed Mechanics Lien
Loss of Lien Rights
An improperly filed lien becomes unenforceable, preventing the contractor from using it to recover owed payments.
Court-Ordered Lien Removal
Property owners can petition the court to have an invalid lien removed from the property title.
Liability for Legal Fees
If a court determines that a lien was filed negligently or in bad faith, the property owner may be awarded legal costs from the lien claimant.
Common Reasons a Mechanics Lien May Be Invalid
- Incorrect Information – Errors in property details, owner names, project descriptions, or the amount owed can invalidate the lien.
- Missed Deadlines – Failing to file the lien within the legally required timeframe can render it void.
- Failure to Provide Proper Notice – In states requiring a preliminary notice, neglecting to notify the property owner can result in an invalid lien.
- Technical Errors – Typos, improper formatting, or missing signatures may lead to rejection
Steps to Take If a Mechanics Lien Is Incorrect
- Consult an Attorney – Seek legal guidance to assess your options for challenging the lien.
- Review the Lien – Check for inaccuracies or procedural errors that could invalidate it.
- Communicate with the Lien Claimant – Attempt to resolve the issue directly before pursuing legal action.
- File a Court Petition – If necessary, formally request the court to remove the lien.
Ensuring a mechanics lien in Calfornia is properly filed is crucial for enforcing payment rights. Contractors and property owners alike should understand the legal requirements to avoid disputes and costly legal battles.
Conclusion
Filing a mechanics lien in California is a critical step for contractors and suppliers to secure payment. By understanding the process, meeting deadlines, and ensuring proper documentation, lien claimants can protect their rights and improve their chances of getting paid. However, filing incorrectly or missing deadlines can result in losing lien rights. If in doubt, seeking legal guidance can help ensure compliance with California lien laws.
At CRM Lien Services, we have been serving customers nationwide with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics’ lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.
We would love to work with you and help you lower your risk and get paid fast!
