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Video Guide on California Construction Liens management

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Commonly Asked Questions about California Construction Liens

The potential lien claimant must record the mechanics lien within 90 days of: Completion of work, When the owner began using the improvement, or When the owner accepted the improvement. If the potential lien claimant fails to record the mechanics lien within the appropriate time frame, the lien isnt valid.
California Mechanics Lien law provides special protection to contractors, subcontractors, laborers and suppliers who furnish labor or materials to repair, remodel or build your home.
For all claimants except for the direct contractor, a preliminary notice is required in order to file a mechanics lien in California in the event of unpaid work. If you werent able to serve a preliminary notice to the owner that covers the work or supplies youve provided for a project, you lose your right to lien.
A lien can result when the prime contractor (referred to as a direct contractor in mechanics lien revision statutes, effective July 1, 2012) has not paid subcontractors, laborers, or suppliers. Legally, the homeowner is ultimately responsible for payment even if they already have paid the direct contractor.
A lien expires 10 years from the date of recording or filing, unless we extend it. If we extend the lien, we will send a new Notice of State Tax Lien and record or file it with the county recorder or California Secretary of State. We will not release expired liens.
A lien doesnt mean you will be paid right away, This means that you force the debtor to sell the property and pay you with that money. This doesnt work if the money owed is a consumer debt (debt taken out for personal or household use).
It should be kept in mind that in California after completion, the commencement of the lien period occurs 60 days after cessation of the job, 30 days after notice of completion has been filed or upon acceptance of the work or occupation of the project by the owner.
Contractors, subcontractors, laborers, and material suppliers can file what is called a mechanics lien on a homeowners property if they dont get paid. Property owners need to be aware of the process so they can avoid financial and legal pitfalls.
Californias deadline to file a mechanics lien is 90 days after the completion of the project as a whole. However, if a notice of completion or cessation was filed, the deadline for subcontractors, suppliers, and other sub-tier parties is shortened to 30 days from the date the notice was filed. California Mechanics Lien Guide FAQs - Levelset levelset.com levelset.com