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Publications
Checklist for Asserting A Mechanic's Lien
Construction Practices Newsletter
Spring 2008
One who is not compensated for providing labor, services, equipment and/or materials to the construction of any private work of improvement is entitled, under the California Constitution, to a lien upon the property for the value of the work.
Here is a basic checklist of procedural requirements for perfecting a mechanic’s lien claim. This list includes only the most basic information and is not intended to substitute the advice of counsel.
Are You a Proper Mechanic’s Lien Claimant?
You are entitled to assert a mechanic’s lien if:
- You provided labor, services, equipment, and/or materials to a privately funded project to construct a work of improvement;
- Labor was performed on the subject project;
- Materials were intended for and used and/or consumed on the project;
- The work of improvement is permanent; and
- Your work was performed with the consent of the owner or his or her agent.
Serving Your Preliminary 20-Day Notice
As a prerequisite to recording a mechanic’s lien, certain claimants are required to serve a "preliminary 20-day notice" shortly after beginning work.
Are You Required to Serve a Preliminary 20-Day Notice?
- If you are not an "original contractor" (in direct contract with the owner), you must serve a preliminary 20-day notice on the owner, general contractor and construction lender.
- If you are an original contractor, but not the general contractor, you must serve a preliminary 20-day notice on the construction lender.
- If you are the project’s general contractor, you are not required to serve a preliminary 20-day notice.
How to Serve a Timely Preliminary 20-Day Notice
Timing
- You may serve a preliminary 20-day notice any time after you contract to provide labor, services, equipment and/or materials.
- You must serve a preliminary 20-day notice within 20 days of commencement of work. If your notice is served more than 20 days after the commencement of work, it is valid as regards work performed and materials furnished from 20 days prior to service.
Manner
- "Service" may be accomplished by:
• Personal service;
• Left at recipient’s business or residential address with a responsible person;
• Mailed by registered or certified mail to recipient’s business or residence address, or to address listed on building permit. Service is complete upon deposit.
Contents of Preliminary20-Day Notice
- A description of the labor, services, equipment and/or materials furnished and a price estimate;
- The name and address of the person furnishing labor, services, equipment and/or materials;
- The name of the person who contracted for purchase of labor, services, equipment and/or materials;
- A description of the jobsite sufficient for identification; and
- The full text of the "Notice To Property Owner," in boldface type.
- Special notice of past due wages and benefits (if any), including:
- The identity and address of any unpaid laborer; and
- The identity of any trust fund to which employer payments are due.
Recording Your Mechanic’s Lien
How to Determine When to Record
- You may record a mechanic’s lien claim after completion of your contract (recordation before completion is premature and void).
- An original contractor’s contract is "complete" when his obligation is fully performed, excused or otherwise discharged.
- Other claimants’ contracts are "complete" when the claimant has ceased furnishing labor, services, equipment and/or materials.
- The deadline to record a mechanic’s lien depends upon whether the owner has filed a notice of completion or a notice of cessation of labor.
- Where a notice of completion or cessation has been recorded:
An original contractor – other than a material supplier – must record a mechanic’s lien within 60 days of the owner’s recordation.
- Other claimants and material suppliers with direct contractual relationships with the owner must record mechanic’s liens within 30 days of the owner’s recordation.
Where no notice of completion or cessation has been filed, claimants must record a mechanic’s lien within 90 days of "completion":
Owner occupies premises or uses improvement and labor ceases;
Owner accepts improvement; or
Labor ceases for 60 continuous days.
Content of Mechanic’s Lien
- The claimant’s employer’s name (or the recipient of equipment or materials);
and
- A description of the site sufficient for identification.
- The signature of the claimant or his agent (no certificate of acknowledgement
is necessary).
Note: Record your mechanic’s lien in the county in which the subject real property is situated. Include the names of against whom and by whom the claim is recorded, and the owner’s address.
Timely Action to Foreclose Lien
The final requisite step to recover under a mechanic’s lien claim is a timely action to foreclose the lien, filed in superior
court in the county in which the subject property is located.
- An action to foreclose a mechanic’s lien may be filed as soon as the mechanic’s
lien claim is recorded.
- An action to foreclose a mechanic’s lien must be filed by no later than 90 days after recordation of the mechanic’s lien.
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