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In California, when construction work is performed or materials are supplied for a property, ensuring that payment is secured is crucial for contractors, subcontractors, and suppliers alike. The Mechanics Lien form serves as a powerful tool in this regard, providing a legal claim against the property that can compel payment for services rendered. This form is not merely a piece of paper; it embodies a series of important details that must be meticulously filled out to protect the rights of those who contribute to a construction project. Key elements include the identification of the property owner, a description of the work performed or materials supplied, and the amount owed. Timeliness is essential, as the form must be filed within a specific timeframe to be enforceable. Additionally, understanding the process of serving the lien and the potential consequences of not paying can help all parties involved navigate the often complex landscape of construction law. By utilizing the Mechanics Lien form correctly, individuals can safeguard their financial interests and ensure that they receive compensation for their hard work and investment.

Common mistakes

  1. Incorrect Property Description: Many individuals fail to provide an accurate description of the property. This includes not specifying the correct address or legal description, which can lead to complications.

  2. Missing Signatures: Some forms are submitted without the required signatures. Both the claimant and, if applicable, the property owner must sign the document for it to be valid.

  3. Improper Filing Dates: People often neglect to include the date of filing or mistakenly use the wrong date. This can affect the priority of the lien.

  4. Failure to Include Required Information: Certain details must be included, such as the amount owed and the nature of the work performed. Omitting this information can result in rejection of the lien.

  5. Not Following Local Procedures: Each county may have specific filing requirements. Ignoring these local rules can lead to delays or denial of the lien.

Key takeaways

Filing a Mechanics Lien in California can be a crucial step for contractors and suppliers to secure payment. Here are some key takeaways to keep in mind:

  • Know the deadlines: You typically have 90 days from the completion of your work to file a Mechanics Lien. Be mindful of this timeline.
  • Gather necessary information: Ensure you have all relevant details, such as the property owner’s name, the description of the work done, and the amount owed.
  • Use the correct form: Make sure to fill out the official California Mechanics Lien form. Inaccuracies can lead to delays or rejections.
  • Serve the lien: After filing, you must serve a copy of the lien to the property owner. This step is essential to make your claim valid.
  • File with the right county: Submit your lien to the county recorder's office where the property is located. This ensures it is properly recorded.
  • Consider legal advice: If you’re unsure about the process or your rights, consulting with a legal expert can help clarify your situation.

Taking these steps can help protect your interests and ensure you receive the payment you deserve.

Mechanics Lien California Example

Recording requested by (name):

____________________________________________

When recorded, mail to (name and address):

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Recorder’s Use Only

CLAIM OF MECHANICS LIEN

(Cal. Civ. Code § 8416)

Declaration of Exemption From Gov’t Code § 27388.1 Fee

Transfer is exempt from fee per GC § 27388.1(a)(2):

recorded concurrently “in connection with” transfer subject to DTT

recorded concurrently “in connection with” a transfer of residential dwelling to an owner-occupier

Transfer is exempt from fee per GC 27388.1(a)(1):

Fee cap of $225.00 reached

Not related to real property

1._________________________________________________ (“claimant”) claims a mechanics lien for the labor or services or equipment or materials described in paragraph 2, furnished for a work of improvement on that certain real property located in the County of ____________________________, State of California, and more particularly described as (address and/or sufficient description):______________________________________________________________

_______________________________________________________________________________________________

2.After deducting all just credits and offsets, the sum of _______________________, together with interest at the rate of ________ per annum from __________________ (date when balance became due), is due claimant for the following labor, materials, services, or equipment: _______________________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

3.Claimant furnished the labor or services or equipment or materials, at the request of _____________________

_________________________________________________________________ (employer, person, or entity to whom labor, materials, services, or equipment were furnished).

4.The name and address of the owner or reputed owner of the real property is/are: _______________________

_______________________________________________________________________________________________

5.Claimant's address is: _______________________________________________________________________

Dated __________________________________ _____________________________________________

Claimant

_____________________________________________

Signature of Claimant or Authorized Agent

_____________________________________________

Print Name and Title

VERIFICATION

I, _______________________________________, am the: __________________________________ (“owner,”

“president,” “authorized agent,” “partner,” etc.) of claimant on the foregoing claim of mechanics lien, and am authorized to make this verification for and on its behalf. I have read the foregoing claim of mechanics lien and know the contents of the claim of mechanics lien to be true of my own knowledge.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Dated __________________________________ _____________________________________________

Signature

NOTICE OF MECHANICS LIEN CLAIM

ATTENTION!

Upon the recording of the enclosed MECHANICS LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.

The party identified in the enclosed mechanics lien may have provided labor or materials for improvements to your property and may not have been paid for these items. You are receiving this notice because it is a required step in filing a mechanics lien foreclosure action against your property. The foreclosure action will seek to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanics lien is release.

BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANICS LIENS GO TO THE CONTRACTORS' STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov.

PROOF OF SERVICE AFFIDAVIT

California Civil Code section 8416

Failure to serve the Mechanic’s Lien and Notice of Mechanic’s Lien on the owner, or alternatively if the owner cannot be served on the lender or direct contractor, shall cause the Mechanic’s Lien to be unenforceable as a matter of law (Civil Code Section 8024(d)). Service of the Mechanic’s Lien and Notice of Mechanic’s Lien must be by (1) registered mail, (2) certified mail, or (3) first-class mail evidenced by a certificate of mailing, postage prepaid, and to a residence or business address for the owner, lender or contractor. Further, a Proof of Service Affidavit (below) must be completed and signed by the person serving the Mechanic’s Lien and Notice of Mechanic’s Lien. This page should be completed (either one of the sections below) and recorded with the County Recorder along with the Mechanic’s Lien and Notice of Mechanic’s Lien.

PROOF OF SERVICE AFFIDAVIT (ON OWNER)

California Civil Code section 8416(a)(7) and (c)(1)

I, ______________________________ (name), declare that I served a copy of this Mechanic’s Lien and

Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail evidenced by a certificate of mailing, postage prepaid, addressed as follows to the owner(s) or reputed owner(s) of the property:

Company/Person Served: ________________________________________________________________

Title or capacity of person served (if appropriate): ______________________________________________

Service address: ________________________________________________________________________

Said service address is the owner’s residence, place of business, or address showed by the building permit on file with the permitting authority for the work.

Executed on ___________, 20_____ (date) at __________________ (city), _____________________

(county), California.

By: _____________________________________

(Signature of person making service)

ALTERNATE PROOF OF SERVICE AFFIDAVIT (ON LENDER OR DIRECT CONTRACTOR)

California Civil Code Section 8416(a)(7) and (c)(2)

I, ____________________________________________________ (name), declare that the owner or

reputed owner cannot be served with a copy of this Mechanic’s Lien and Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail. Pursuant to California civil Code section 8416(c )(2), I served a copy of this Mechanic’s Lien and Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail evidenced by a certificate of mailing, postage prepaid, addressed as follows to the construction lender or direct contractor as follows:

Company/Person Served: ________________________________________________________________

Title or capacity of person served (if appropriate): ______________________________________________

Service address: ________________________________________________________________________

Executed on ___________, 20_____ (date) at __________________ (city), _____________________

(county), California.

By: _____________________________________

(Signature of person making service)

Understanding Mechanics Lien California

What is a Mechanics Lien in California?

A Mechanics Lien is a legal claim against a property that ensures payment for work performed or materials supplied during construction. If a contractor, subcontractor, or supplier is not paid, they can file a lien to secure their right to payment from the property owner.

Who can file a Mechanics Lien?

In California, various parties can file a Mechanics Lien, including:

  • General contractors
  • Subcontractors
  • Material suppliers
  • Laborers

Essentially, anyone who has provided labor or materials for the construction or improvement of a property may have the right to file a lien.

What is the deadline for filing a Mechanics Lien?

The deadline to file a Mechanics Lien in California is typically 90 days from the completion of the work. For a residential property, the lien must be filed within this timeframe to be valid. It’s important to keep track of the completion date to ensure timely filing.

How do I file a Mechanics Lien?

To file a Mechanics Lien, follow these steps:

  1. Obtain the correct form from the county recorder’s office or online.
  2. Fill out the form with accurate information, including the property owner’s details and a description of the work performed.
  3. File the completed form with the county recorder’s office in the county where the property is located.
  4. Pay any required filing fees.

After filing, it’s crucial to serve a copy of the lien to the property owner within a specific timeframe.

What information is required on the Mechanics Lien form?

The Mechanics Lien form must include the following information:

  • The name and address of the property owner
  • The name and address of the lien claimant
  • A description of the work performed or materials supplied
  • The amount owed
  • The property description

Providing accurate and complete information is essential to avoid complications.

What happens after I file a Mechanics Lien?

After filing, the lien becomes a public record. The property owner must be served with a copy of the lien within 30 days. If the debt remains unpaid, the lien claimant may need to file a lawsuit to enforce the lien within 90 days of filing.

Can a Mechanics Lien be removed?

Yes, a Mechanics Lien can be removed. This can happen in several ways:

  • If the debt is paid, the lien claimant must file a lien release.
  • If the lien is deemed invalid, the property owner can file a petition to have it removed.
  • After a certain period, if no action is taken, the lien may automatically expire.

It’s important to address any liens promptly to avoid complications with property sales or refinancing.

What are the consequences of not paying a Mechanics Lien?

If a Mechanics Lien is not paid, the claimant may pursue legal action to enforce the lien. This could lead to a court judgment, and in some cases, the property may be sold at auction to satisfy the debt. Non-payment can also affect the property owner’s credit and ability to sell or refinance the property.

While it’s possible to handle a Mechanics Lien without legal help, consulting with an attorney can provide valuable guidance. They can help navigate the complexities of the filing process, ensure compliance with deadlines, and represent your interests if disputes arise.

How to Use Mechanics Lien California

Filling out the Mechanics Lien form in California is a crucial step for those seeking to secure payment for work performed on a property. The process requires attention to detail and accuracy to ensure that the lien is valid. Below are the steps to complete the form effectively.

  1. Obtain the Mechanics Lien form from a reliable source, such as the California Secretary of State's website or a legal stationery store.
  2. Enter the name of the property owner in the designated section. Ensure the spelling is correct and matches public records.
  3. Provide the property address. This should include the street number, street name, city, and zip code.
  4. Fill in your name or the name of the entity filing the lien. Include any relevant business information if applicable.
  5. Specify the type of work performed or materials supplied. Be concise but clear in your description.
  6. Indicate the total amount owed for the work or materials. Ensure this figure is accurate to avoid complications.
  7. Include the date the work was completed or the materials were supplied. This is important for the timeline of the lien.
  8. Sign and date the form. If filing on behalf of a business, ensure the authorized representative signs.
  9. Make copies of the completed form for your records before submitting.
  10. File the completed form with the appropriate county recorder’s office. Be aware of any filing fees that may apply.

After submitting the form, keep track of any further steps required, such as notifying the property owner or other parties involved. It is essential to follow up to ensure that your lien is processed correctly and to protect your rights as a claimant.