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Mechanic’s Lien in California

A mechanic’s lien is a powerful legal tool in California construction law that allows contractors, subcontractors, and suppliers to secure payment for work or materials provided to improve a property. Governed primarily by the California Civil Code, sections 8000 through 9566, and rooted in Article XIV, Section 3 of the California Constitution, mechanic’s liens are a constitutional right designed to protect the interests of those contributing to property improvements.

Filing a Mechanic’s Lien in California

To file a valid mechanic’s lien in California, the following requirements must be met:

Eligibility

The claimant must have provided labor, materials, or services that improved the property.

Preliminary Notice

Proper preliminary notices must be given to the property owner unless the claimant has a direct contractual relationship with the owner.

Timely Recording

The lien must be recorded within 90 days of completion of work, or within 60 days after a Notice of Completion or Cessation is filed.

Required Information

The lien must contain specific information, including:

  • The claimant’s name
  • A legal description of the property
  • The name of the property owner
  • The exact amount owed

Service of the Lien

The lien must be properly served on the property owner within 20 days of recording, as required by California Civil Code §8416(b).

Removing a Mechanic’s Lien in California

There are several legal pathways for removing a mechanic’s lien:

Payment and Release

The simplest method is to pay the owed amount, after which the claimant files a lien release with the county recorder’s office.

Expiration

A mechanic’s lien automatically expires if the claimant does not file a foreclosure action within 90 days of recording the lien. Although expired, the lien may still appear in property records until formally removed.

Formal Removal

This typically involves:

  • Filing a petition with the court for an order to release the lien
  • Submitting a lien release document to the county recorder’s office, ensuring the lien no longer clouds the property’s title

Court Petition

Property owners can petition the court to remove an invalid lien by following these steps:

  1. Send a written demand to the claimant to remove the lien.
  2. Wait at least 10 days for a response.
  3. File a petition with the court if the lien is not voluntarily removed.

Bonding Off the Lien

A property owner can post a surety bond equal to 125% of the lien amount, releasing the property from the lien while allowing the dispute to proceed separately.

Negotiated Settlement

Negotiating directly with the lien claimant can often result in a faster, mutually agreeable resolution.

Legal Precedents and Case Example

In a case undertaken by Bay Legal, a property owner sought the removal of a mechanic’s lien recorded by a construction company. The lien was deemed invalid due to:

  • Failure to commence an enforcement action within 90 days of recording the lien, rendering it expired under California Civil Code §8460.
  • Failure to serve a copy of the recorded lien to the property owner within the required timeframe, violating California Civil Code §8416(b).

The plaintiff successfully filed a petition for removal, citing that the lien was unenforceable and had caused slander of title, impacting the property’s marketability.

Legal Precedents and Case Example

In a case undertaken by Bay Legal, a property owner sought the removal of a mechanic’s lien recorded by a construction company. The lien was deemed invalid due to:

  • Failure to commence an enforcement action within 90 days of recording the lien, rendering it expired under California Civil Code §8460.
  • Failure to serve a copy of the recorded lien to the property owner within the required timeframe, violating California Civil Code §8416(b).

The plaintiff successfully filed a petition for removal, citing that the lien was unenforceable and had caused slander of title, impacting the property’s marketability.

How Bay Legal, PC Can Help

At Bay Legal, PC, we specialize in mechanic’s lien law and construction dispute resolution. Our experienced attorneys assist contractors, subcontractors, suppliers, and property owners in filing, enforcing, or disputing mechanic’s liens to protect their legal and financial interests. We ensure compliance with California lien laws, provide strategic guidance, and offer practical solutions tailored to your specific situation.

Don’t let a mechanic’s lien put your project or property at risk. Contact Bay Legal, PC today for a consultation, and let our team help you navigate the complexities of California construction law with confidence.

Contact us today for a consultation to discuss how we can assist you.

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