California Attorney: Mechanic's Lien Issues

A mechanic's lien is a powerful constitutional remedy available to subcontractors and general contractors, among others. However, because the remedy has the potential for an inequitable result (homeowner pays twice), the law requires strict compliance with the statutory rules governing mechanic's liens. Contact the Coggins & Johnston law firm for a free consultation regarding your mechanic's lien procedure and rights.

What is the 20-day Preliminary Notice and Do I Need One?
A 20-day preliminary notice provides notice to the homeowner, general contractor, and construction lender (if applicable) that you have the right to assert a mechanic's lien on the property. The notice must be in strict compliance with the statute.

NOTE: The notice may be given anytime during the progress of the work or before work begins, However, mechanics lien rights are lost as to any work or material furnished more than 20 days before service of the notice. Thus, to protect your full rights you will typically serve the notice within 20 days of beginning work.

Anyone who wants to assert a mechanics lien, stop notice, or payment baind rights on a construction job, except the original general contractor under some circumstances, must give the preliminary 20-day notice.

NOTE: Civil Code Section 3097(h) makes it mandatory for a subcontractor to give the 20-day notice when the contract amount exceeds $400. Failure to give notice constitutes grounds for disciplinary action by the Registrar of Contractors.

When Would a Mechanic's Lien be Filed?
A mechanic's lien must be filed within 90 days after work is completed. However, if a Notice of Completion is filed then the time can be shorten to 30 days! A foreclosure action must be filed against the property within 90 days of the filing of the lien. You need a lawyer with experience in construction dispute resolution.

It is important to understand that a foreclosure action must be started to preserve the lien on the property. A lien on a property after 90 days without the commencement of foreclosure is illegal, and you are subject to up to $2,000 dollars in attorney fees if the homeowner has to force you to remove it.

Protect Your Rights. File a Mechanic's Lien and Foreclose.
The California Constitution provides contractors with this very powerful remedy to insure that contractors get paid for their work. However, many contractors do not take advantage of this remedy and consistently lose money and profit. Talk to a lawyer about construction law and about protecting your Constitutional remedy of a mechanic's lien in a free consultation.

When you need a law firm that has a solid foundation of experience, a sincere interest in helping you, and an in-depth understanding of the law, contact the Coggins & Johnston law firm. There is no charge for the initial consultation.

Call (916) 797-1397 for a free consultation with a business law attorney at our Rocklin office.