Mechanics Liens: Part 2

Recording and Serving a Mechanics Lien                           Continued from Mechanics Leans: Part 1

  1. You need to prepare and serve a preliminary notice before you can record and serve a mechanic’s lien.
  2. 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.
  3. 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:
  4. 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.
  5. Seeding, sodding, or planting of real property for landscaping purposes and
  6. Leveling, filling or grading of real property-or any other type of work that you can think of that benefits real property.
  7. 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.
  8. 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:

  1. The address and county where the work is performed
  2. The dollar amount with reasonable offsets if there are any that you have not been paid.
  3. You can claim interest such as 1 1/2 percent per month
  4. That party that was furnished the services you performed-the direct contractor-the sub-the sub – sub
  5. The nature of materials-plumbing toilets etc or i installed electrical throughout the house
  6. The name and address of the owner or owners of the property
  7. Your name and address and a signature and verification.
  8. You need to attach a notice of lien
  9. 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)
  10. If you can’t serve the owner or reputed owner then serve construction lender or direct contractor
  11. 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.
  12. To perfect the lien -within 90 calendar days after recording the lien-a lawsuit needs to filed which forecloses on the mechanic’s liens
  13. 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

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© 2013 Robert L. Bachman