How to File a Mechanics Lien in California

How to File a Mechanics Lien in California

Payment delays and non-payment are not unusual in construction. Mechanics liens exist to protect construction professionals from unpaid work. This article discusses how mechanics liens work in California, who they are for, and how contractors, subcontractors and material suppliers can ensure their mechanics lien is valid and enforceable in the even they need to use one.

What is a mechanics lien in California?

Mechanics liens are a tool for contractors, subcontractors, and material suppliers to recover payment in case of issues on a construction project. It works by placing a “hold” on a project property as a security for unpaid work. If work remains unpaid, the mechanics lien can be enforced and result in the foreclosure of a property or a forced sale.

What is the purpose of a mechanics lien in California?

Why do you file a mechanics lien in California?
Mechanics liens are meant to protect construction professionals from unpaid work. Once a person who was contracted to perform work or deliver supplies to a construction project is not paid for the work or supplies provided, they can file a claim of lien to recover payments. 1 This is often the last resort for contractors, subcontractors, and material suppliers. Filing a claim of lien after exhausting methods to collect is a legal avenue that can protect you from clients who are unable or unwilling to pay and can result in the sale of the property to pay for unpaid contractors and suppliers. The mechanics lien process in California also allows ample notice and time for the owner to pay and make the situation right before it results in foreclosure.

However, the right to file a lien comes with responsibilities. It is easy for contractors to lose their right to lien if they are not familiar with the lien process and fail to fulfill the requirements for filing a lien in California, such as pre-lien notices, also called the California 20-day preliminary notice. 2 You may learn all about this notice here: California Preliminary Notice for Private Works: Facts and Timelines.

How do mechanics liens work in California?

How does filing a California Mechanics Lien Claim help me get my money?
Mechanics liens place a “hold” on the property where the work or supplies were provided. Once a mechanics lien has been filed and recorded, the property owner was unable to resolve the issue of unpaid work within the timeframe provided by law (90 days after mechanics lien is recorded) 3 , the claimant can move to enforce the lien. The court can then foreclose or order the sale of the property in order to pay lien claimants.

Who is responsible for a mechanics lien in California?

Anybody who has the right to lien must ensure that they file the required preliminary notices in California. If unpaid after work completion, the claimants are also responsible for recording the mechanics lien with the county recorder. Claimants can use lien services like Handle to ensure that all required notices are sent and all deadlines are met, eliminating the risk of losing the right to file a mechanics lien if they go unpaid.

As for paying for the work provided, the person who contracted for the work–usually the owner–is ultimately responsible for ensuring that all parties who provided work are paid. This means the owner is ultimately responsible if a subcontractor or other low tier subcontractors are left unpaid by the contractor who hired them. This is why California requires specific notices to be filed and recorded to ensure that all parties are notified of their responsibilities and risks they’re subject to throughout the construction project.

Who can file a mechanics lien in California?

Who can make a Mechanics Lien? Who can record a mechanics lien in California? Should I file a California mechanics lien?

As the law states, anybody who has provided any of the following to a project, under a contract with the owner, contractor, or subcontractor for the project has a right to lien as long as they provide the required preliminary notice/s 4 :

In summary, the following has lien rights in California: