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California Mechanics Lien Frequently Asked QuestionsCalifornia Lien Documents are Easy to File with LienItNow.com  What is a California mechanics' lien Claim?In California, liens filed on private
property are known as
Mechanic's Liens. When a
California mechanics lien is filed with
regard to work performed
on privately owned
property, it attaches to
and encumbers the fee
simple ownership of
property. Can I file a California mechanics' lien Claim when the project is on government owned Property?
In most circumstances,
California does not
allow mechanics liens to
be filed on government
owned property.
However, nearly every
project on government
owned project is
required to have a
payment bond in place to
protect subcontractors
and suppliers. Filing a
claim against the
payment bond secures
your claim for money in
a way that is similar to
filing a lien claim. In
addition to the payment
bond, stop notices may
also be filed.
Both bond claims and
stop notices are
discussed in more detail
below. Who can file a California mechanics' lien Claim?Contractors, as well as
subcontractors, design
professionals,
sub-subcontractors and
material suppliers can
file a California
mechanics lien. If a
company supplies
material to a material
supplier, they are not
eligible to file a
California mechanics lien
claim. Are pre-lien notices for California mechanics' lien Claims required?Yes. Within 20 days of
the commencement of work
on the property,
subcontractors and
suppliers should provide
written notice to the
owner, the general
contractor and the
construction lender that
they are performing work
on the property. If the
notice is served late,
then the claimant can
claim a California
construction lien for the
value of the labor or
materials provided in
the 20 days preceding
the service of the
notice and thereafter. Can you file a California mechanics' lien Claim without a pre-lien notice?Pre-lien notices are required
to be served prior to
filing a California mechanics' lien claim. When should a California mechanics' lien Claim be filed?Prime contractors must
file a California claim of lien
within 60 days
after a notice of
completion or notice of
cessation is recorded,
or
if no recording of
completion or cessation
is accomplished, within
90 days after the
completion of the work of improvement. Subcontractors and
materialmen must file a
California claim of lien within
30 days after a
notice of completion or
notice of cessation is
recorded, or
if no recording of
completion or cessation
is accomplished, within
90 days after the
completion of the work
of improvement. How much does it cost to file a California mechanics' lien Claim?LienItNow.com prepares, files and
serves California
mechanics' liens (which
includes a written
notice of intent to
claim a lien, if
necessary, as well as a
verified statement of
lien) for a fee of
$250.00. Pre-lien notices
are not included in the
$250.00 price, but can
be filed for a fee of
$50.00. Do I need a written contract to file a California mechanics lien claim?No. Oral contracts are
sufficient if you have
sufficient documentation
to show the existence of
an agreement or that you
performed the work for
which you are filing a
California mechanics
lien. How does filing a California mechanics' lien Claim help me get my money?On a private project,
the California mechanics' lien places an encumbrance on
the property that makes
it difficult to resell
or re-finance the
property without first
removing the
construction lien. What is a California Stop Notice and why should it be filed?LienItNow.com prepares and serves
California Stop Notices for
a fee of $100.00.
A Stop Notice can be
filed on both public and
private projects, and is
a notification that has
the ability to enhance
the effectiveness of a
mechanic's lien. A Stop
Notice, or a notice to
withhold funds, is sent
to the company that is
financing or funding the
construction funds for a
project. Once that
company receives the
Stop Notice, that
company has notice that
it should withhold
sufficient money to
satisfy the stop notice
claim. The purpose of
the Stop Notice is to
provide the lender,
financiers or funders of
the construction project
notice that there is
money owed to a
contractor,
subcontractor or
supplier so that an
inquiry can be made as
to why that money is not
being paid. The 20 day
pre-notice is required
to be eligible to file a
Stop Notice. What is an Amendment to a California mechanics' lien Claim?LienItNow.com prepares, files and
serves California
Amendments to mechanics' lien Claims for a fee of
$225.00. Amendments to a
mechanics' lien claim
are often needed when
something about the
lien claim changes. Common
changes to a lien claim
are increases or
reductions in the amount
due to the lienor, or a
change to the last date
of work. When should a California Discharge of mechanics' lien claim be filed?LienItNow.com prepares, files and
serves California
Discharges of mechanics' lien Claims for a fee of
$75.00. Once the lienor
has been paid the amount
contained in its lien
claim, or has come to an
agreement that requires
the lien claim to be
removed from the
property records, a
Discharge of mechanics' lien Claim should be
filed. How much does it cost to file an Extension of a mechanics' lien Claim?LienItNow.com prepares, files and
serves extensions of
mechanics' lien Claims
for a fee of $75.00.
All lien claims expire
after a certain period
of time, and filing an
extension of the
mechanics' lien claim
prolongs the expiration
date. California law,
however, does not permit
an extension of
mechanics' lien claims. Can I file a Bond Claim on a California Project?LienItNow.com prepares, files and
serves California Bond Claims for a fee of $250.00. Bond claims
can only be filed on a
project where the owner,
contractor or
subcontractor has
obtained a payment bond
to ensure that every
contractor receives
payment for the work
performed on the
Project. The payment
bonds issued by sureties
for construction
projects have specific
timing requirements, but
most require claimants
to submit claims against
the bond within sixty to
ninety days from the
claimants' last date of
work. Bond claims are as or
more effective than a
lien claim because the
payment bond acts as a
guarantee that payment
will be made for work
properly completed. Do I need to file a Pre-Notice to make a claim against a California payment bond?LienItNow.com prepares, files and
serves California
Pre-Notices for bond
claims for a fee of
$50.00. Depending on
the terms of the payment
bond, pre-notices may or
may not be required.
LienItNow.com recommends that, prior
to or immediately after
starting work or
delivering materials to
a project,
subcontractors and
suppliers, file a
pre-notice that it is a
potential beneficiary of
the construction
project's bond. |
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