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What Is A Mechanics Lien?
Under the California Mechanics Lien Law, any contractor, subcontractor,
laborer, supplier or other person or entity who helps to improve your
property but is not paid for his or her work or supplies, has a right
to place a lien on [a claim against] your home, land, or property where
the work was performed, and to sue you in court to obtain payment.
This means that after a court hearing, your home, land, and property
could be sold by a court officer and the proceeds of the sale used to
satisfy what you owe. This can happen even if you have paid your contractor
in full if the contractors’ subcontractors, laborers, or suppliers
remain unpaid.
To preserve their rights to file a claim or lien against your property,
certain claimants such as subcontractors or material suppliers are
each required to provide you with a document called a “Preliminary
Notice.” Contractors and laborers who contract with owners
directly do not have to provide such notice as you are aware of
their existence as an owner. A Preliminary Notice is not a lien
against your property. Its purpose is to notify you of persons or
entities that may have a right to file a lien against your property
if they are not paid. In order to perfect their lien rights, a contractor,
subcontractor, supplier, or laborer must file a mechanics’
lien with the county recorder which then becomes a recorded lien
against your property. Generally, the maximum time allowed for filing
a mechanics’ lien against your property is 90 days after substantial
completion of your project.
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