Mechanics Liens and Preliminary Notices — Contracts

Why the mechanics lien exists

The California Constitution gives contractors, subcontractors, suppliers, and laborers the right to claim a lien against the property they improved if they are not paid. The lien attaches to the property and can be foreclosed on through a lawsuit, similar to a mortgage foreclosure.

Preliminary 20-day notice

Anyone who is not in direct contract with the owner must serve a preliminary notice within twenty days of first furnishing labor or materials. Direct contractors only need to serve the notice on a construction lender, if there is one. Without a timely preliminary notice, lien rights are forfeited for work performed more than twenty days before the notice was served.

Recording and enforcing

On private work, the lien must be recorded within ninety days after the project completion, or within sixty days after a Notice of Completion is recorded by the owner, whichever is earlier. After recording, the lienholder has ninety days to file a foreclosure lawsuit, or the lien expires automatically.