{"id":1673,"date":"2019-01-25T16:24:19","date_gmt":"2019-01-25T21:24:19","guid":{"rendered":"https:\/\/www.lienitnow.com\/blog\/?p=1673"},"modified":"2019-01-28T12:26:52","modified_gmt":"2019-01-28T17:26:52","slug":"filing-california-mechanics-liens","status":"publish","type":"post","link":"https:\/\/www.lienitnow.com\/blog\/2019\/01\/filing-california-mechanics-liens.html","title":{"rendered":"Filing California Mechanic\u2019s Liens"},"content":{"rendered":"

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As a hardworking contractor or repair worker, the last thing you want is to lose out on the money owed to you. At a retail store, a customer doesn\u2019t just walk on home with a product without first paying. But working on a home renovation\u2014be it electric wiring, appliance installation, sheetrock repair, and more\u2014isn\u2019t like selling a product. You usually get paid after the work is completed, and maybe you feel worried that a contractor or homeowner won\u2019t come through on your paycheck. You could complete all that labor and end up empty-handed and unable to pay your bills. Yikes! It\u2019s enough to make anyone hesitant about who they choose to work with.<\/p>\n

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Luckily, in California there\u2019s a legal way you can protect yourself from flakey clients and get your payments on time. Contractors can insure their work by filing Mechanic\u2019s Liens<\/a>. People who provide labor and materials on private property in California have a constitutional right to file a mechanic\u2019s lien as security until the debt owed is paid. Filing a mechanic\u2019s lien is a method contractors and subcontractors use to ensure they are paid for their work.<\/p>\n

To protect yourself and your livelihood, follow the steps outlined in this guide on how to file a mechanic\u2019s lien in California.<\/p>\n

1. Determine Eligibility<\/h2>\n

First, determine if the work you\u2019re doing qualifies for a mechanic\u2019s lien. Contractors, as well as subcontractors, design professionals, sub-subcontractors, and material suppliers who work on private property, are eligible to file a California mechanic\u2019s lien<\/a>. Don\u2019t get too excited just yet–a mechanic\u2019s lien in California can be filed only by those who contract with the property owner, contractor, or subcontractor. And if you are only supplying materials to another supplier, , you\u2019re probably not not eligible for a California mechanic\u2019s lien claim.<\/p>\n

Additionally, if you are working on government-owned property, it is not legal to file a mechanic\u2019s lien. However, you can still protect yourself: nearly every government-owned project is required to have a payment bond in place to ensure that subcontractors and suppliers get paid. Filing a claim against the payment bond<\/a> 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.<\/p>\n

2. Deliver Preliminary Notice (20 Day Notice)<\/h2>\n

Delivering a preliminary notice, also known as a 20 Day Notice, is the first step in the mechanic\u2019s lien process. The state of California requires that a preliminary notice be given before filing a lien. The purpose of the preliminary notice is to protect lien rights as a precaution before any payment problems arise, and to give the owner a chance to make good on the payment.<\/p>\n

Make sure to mark the dates of work on your calendar and keep your timeline straight: this preliminary notice should be given in writing to the property owner and project stakeholders within 20 days after the work on a property begins–wait too long and you\u2019re out of luck! The notice details who is working on the project and the lien rights. Once you\u2019ve sent the 20 day notice, you can file a mechanics lien if you don\u2019t receive payment down the road. If you are eligible to claim a California mechanic\u2019s lien, you can do it for the value of the labor or materials provided. The important thing is to do these two steps in the right order and follow the exact rules. You can\u2019t just surprise someone out of the blue and expect a big pile of money.<\/p>\n

3. Prepare and Deliver your California Mechanic\u2019s Lien<\/h2>\n

Some states require contractors to deliver a notice of intent to lien. While California is not one of these states, some contractors choose to do so anyway to give property owners an opportunity to pay what is owed. Contractors who decide not to send a notice of intent may proceed directly to preparing and filing a mechanic\u2019s lien in California. A mechanic\u2019s lien claim should include the following information:<\/p>\n