Mechanics Liens: Part 2
Recording and Serving a Mechanics Lien Continued from Mechanics Leans: Part 1
- You need to prepare and serve a preliminary notice before you can record and serve a mechanic’s lien.
- A mechanic’s lien is a secured lien on real property-like a deed of trust -it gives the groups that are covered by the legislation and California constitutional code a secured interest in the property of the owner-it applies to contractors, subcontractors, architects, engineers and material suppliers and a variety of contractors related to performing works of improvement on real property.
- A mechanic’s lien is obtained for labor, services, equipment or material provided to a work of improvement. A work of improvement is not limited to:
- A construction, alteration, repair, demolition or removal in whole or in part of, or addition, to a building, wharf, bridge, ditch, flume, aqueduct, well, tunnel, fence, machinery or railroad or road.
- Seeding, sodding, or planting of real property for landscaping purposes and
- Leveling, filling or grading of real property-or any other type of work that you can think of that benefits real property.
- Within 90 days of completion of your work or the work of improvement you need to record and serve your mechanic’s lien if you are a sub, sub -sub or material supplier. The time period is reduced to 30 days if a notice of completion is recorded.
- If you are a direct contractor-you have the same 90 time period if from completion if there is no notice of completion recorded -otherwise you have 60 days to record your mechanic’s lien-
5 use the form. You need to include:
- The address and county where the work is performed
- The dollar amount with reasonable offsets if there are any that you have not been paid.
- You can claim interest such as 1 1/2 percent per month
- That party that was furnished the services you performed-the direct contractor-the sub-the sub – sub
- The nature of materials-plumbing toilets etc or i installed electrical throughout the house
- The name and address of the owner or owners of the property
- Your name and address and a signature and verification.
- You need to attach a notice of lien
- You need to attach a proof of service affidavit with the name and address of the owner and how served-you can serve by regular mail-I would recommend certified return receipt. (see appendix b)
- If you can’t serve the owner or reputed owner then serve construction lender or direct contractor
- Record the lien in the county where the property is located-the recorder within 10 days will notify the owner that a lien has been recorded.
- To perfect the lien -within 90 calendar days after recording the lien-a lawsuit needs to filed which forecloses on the mechanic’s liens
- For example if the lien was recorded march 30 you would have 90 days (calendar) days from march 30 to file the lawsuit-not June 30 but June 29 because may has 31 days-
If you don’t file the lawsuit in time you lose your lien rights