{"id":973,"date":"2012-06-21T14:29:00","date_gmt":"2012-06-21T14:29:00","guid":{"rendered":"https:\/\/www.lienitnow.com\/blog\/index.php\/2012\/06\/21\/california-lien-law-changes-effective-july-1st-2012\/"},"modified":"2017-12-13T18:06:46","modified_gmt":"2017-12-13T18:06:46","slug":"california-lien-law-changes-effective","status":"publish","type":"post","link":"https:\/\/www.lienitnow.com\/blog\/2012\/06\/california-lien-law-changes-effective.html","title":{"rendered":"California Lien Law Changes Effective July 1st, 2012"},"content":{"rendered":"<p><b><u>How California&#8217;s Changing Lien Law Affects You<\/u><\/b><br \/><b><u><br \/><\/u><\/b><\/p>\n<div style=\"clear: both; text-align: center;\"><a href=\"http:\/\/4.bp.blogspot.com\/-dRzjiR3CQAI\/T-Mkkt5RoYI\/AAAAAAAAABc\/DHcKpNkukVg\/s1600\/california-county-map.gif\" style=\"clear: left; float: left; margin-bottom: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"200\" src=\"http:\/\/4.bp.blogspot.com\/-dRzjiR3CQAI\/T-Mkkt5RoYI\/AAAAAAAAABc\/DHcKpNkukVg\/s200\/california-county-map.gif\" width=\"180\" \/><\/a><\/div>\n<p>As of 7\/1\/12, the existing <a href=\"http:\/\/www.lienitnow.com\/california-property-lien-statutes.asp\">California statutes<\/a> for mechanic&#8217;s liens, stop notices, and bond claims will be replaced by updated statutes. &nbsp;It is important to understand these changes, as they could determine whether or not your lien filing is valid.<\/p>\n<p><b>Preliminary Notices:<\/b>&nbsp;Under the current laws, the <a href=\"http:\/\/www.lienitnow.com\/welcome.asp\">20-Day Notice<\/a> must be served by all subontractors and lower tier contractors or suppliers. &nbsp;On July 1st, this will simply be called a &#8220;Preliminary Notice.&#8221; &nbsp;Subcontractors and lower tier Claimants must serve the notice on the owner and prime contractor, however laborers are not required to serve this notice. &nbsp;The prime contractor is now required to serve the notice on the lender, if any. &nbsp;The Preliminary Notice must be served within 20 days of first furnishing labor or material. &nbsp;If it is served after this point, your lien claim may be limited to 20 days before the notice was served along with everything done after service. &nbsp;Aside from a slightly altered Notice to Owner section on the document, the required job information is identical to the 20-Day Notice.<\/p>\n<p><b>Terminology:<\/b>&nbsp;Under the new statutes, some of the terminology has been changed. &nbsp;A Stop Notice is now called a Stop Payment Notice. &nbsp;The term original contractor will become Direct Contractor. &nbsp;Materialman has been replaced with material supplier. &nbsp;Completion now means the following:&nbsp;<span style=\"font-family: Tahoma, Geneva, sans-serif; font-size: 12px; line-height: 18px;\">(1) actual completion of the work of improvement; (2) occupation or use by the owner accompanied by cessation of labor; (3) cessation of labor for a continuous period of 60 days; or (4) recordation of a notice of cessation after cessation of labor for a continuous period of 30 days. \u201cCompletion\u201d has not been redefined on public works and a project will not be deemed completed unless accepted as complete by the public entity.<\/span><\/p>\n<p><b>Who Can File:<\/b>&nbsp;Design professionals will be able to file liens once the changes take effect.<\/p>\n<p><b>Deadlines:<\/b>&nbsp;The deadline for service of a Stop Notice is currently 90 days from completion. &nbsp;Under the new laws, completion will be at 60 days of job cessation rather than 30 days.<\/p>\n<p><b>Mechanic&#8217;s Lien Filing:<\/b>&nbsp;In California, the unfiled lien must be served upon the owner along with a Notice of Mechanic&#8217;s Lien before it can be filed with the clerk. &nbsp;Under the new statutes, a<span style=\"font-family: Tahoma, Geneva, sans-serif; font-size: 12px; line-height: 18px;\">&nbsp;mechanic\u2019s lien may not be recorded unless it has been accompanied by a proof of service of the lien and the Notice of Mechanic\u2019s Lien on the property owner.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How California&#8217;s Changing Lien Law Affects You As of 7\/1\/12, the existing California statutes for mechanic&#8217;s liens, stop notices, and bond claims will be replaced by updated statutes. &nbsp;It is important to understand these changes, as they could determine whether or not your lien filing is valid. Preliminary Notices:&nbsp;Under the current laws, the 20-Day Notice [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1156,1075,1184,1238,1498],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California Lien Law Changes Effective July 1st, 2012 - Tools of the Trade | LienItNow Blog<\/title>\n<meta name=\"description\" content=\"How California&#039;s Changing Lien Law Affects YouAs of 7\/1\/12, the existing California statutes for mechanic&#039;s liens, stop notices, and bond claims will be\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lienitnow.com\/blog\/2012\/06\/california-lien-law-changes-effective.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Lien Law Changes Effective July 1st, 2012 - 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