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How to File a Lien on a Property in California: A Contractor’s Guide to Getting Paid

Filing a mechanic’s lien in California is your legal right as a contractor, subcontractor, laborer, or material supplier to secure payment for the work or materials you’ve provided to improve a property. Effectively, it’s staking a claim against the property itself, ensuring your debt is prioritized. This article provides a comprehensive guide to successfully navigating the lien process in California, securing your financial interests.

Understanding the Basics of a Mechanic’s Lien

Before diving into the ‘how-to’, it’s crucial to understand what a mechanic’s lien actually is. Think of it as a security interest on the property, similar to a mortgage. If the property owner doesn’t pay you, you can potentially foreclose on the lien and force a sale to recover your funds. However, strict adherence to California’s lien laws is paramount. Fail to follow the procedure precisely, and your lien could be deemed invalid. This guide helps you avoid those pitfalls.

Step-by-Step Guide to Filing a Mechanic’s Lien in California

The process of filing a mechanic’s lien in California involves several key steps, each with strict deadlines. Here’s a breakdown:

1. Preliminary Notice (20-Day Notice)

This is arguably the most crucial step, and often missed! Within 20 days of first furnishing labor, services, equipment, or materials to the job site, you must serve a preliminary notice on the property owner, the general contractor (if you are a subcontractor), and the construction lender (if any). This notice informs them that you are contributing to the project and have lien rights if you are not paid. Failure to serve a timely preliminary notice can jeopardize your lien rights.

Content: The preliminary notice must include specific information like your name and address, a description of the labor or materials provided, the name and address of the person who hired you, the job site address, and a statement about your lien rights. There are prescribed forms available; use them!
Service: The notice must be served by personal delivery, registered or certified mail, or first-class mail with a certificate of mailing. Maintain meticulous records of service, including dates, methods, and proof of delivery.

2. Recording the Mechanic’s Lien

If you’re not paid for your work, the next step is to record a mechanic’s lien with the county recorder’s office in the county where the property is located. This is the official document that creates the lien against the property.

Deadline: The deadline to record a mechanic’s lien depends on whether a notice of completion or a notice of cessation has been recorded.
- Notice of Completion Recorded: If a valid notice of completion is recorded, you have 30 days from the date of recording to record your lien if you are a subcontractor, and 60 days if you are the direct contractor.
- Notice of Cessation Recorded: If a valid notice of cessation (work stopped for a continuous period of 30 days) is recorded, you have 30 days from the date of recording if you are a subcontractor, and 60 days if you are the direct contractor.
- No Notice Recorded: If neither a notice of completion nor a notice of cessation is recorded, you have 90 days from the date you last furnished labor, services, equipment, or materials to the job site.
Content: The lien document must include very specific details:
- Your name and address
- The name of the property owner (as best as you can ascertain it)
- A description of the labor, services, equipment, or materials furnished
- The amount of your claim
- A description of the job site sufficient for identification
- A verification (sworn statement) stating the claim is true and just.
Recording: Once prepared, take the original lien document to the county recorder’s office. You will pay a recording fee, which varies by county. The recorder will stamp the document with the date and time of recording, creating a public record of your lien.

3. Serving the Property Owner with the Lien

After recording the lien, you must serve the property owner with a copy of the recorded lien. This is a critical step for enforceability.

Deadline: You generally have 10 days after recording the lien to serve the property owner.
Method of Service: Service can be done by personal delivery or by registered or certified mail, return receipt requested.
Proof of Service: You must retain proof that the property owner was served with the lien.

4. Filing a Lawsuit to Foreclose on the Lien

Recording the lien is not enough to guarantee payment. If the property owner still doesn’t pay, you must file a lawsuit to foreclose on the lien within a specific timeframe.

Deadline: You have 90 days from the date the lien was recorded to file a lawsuit to foreclose on the lien. This deadline is strictly enforced!
Action: The foreclosure lawsuit asks the court to order the sale of the property to satisfy your lien claim.
Lis Pendens: When you file the lawsuit, you should also record a lis pendens (notice of pending action) with the county recorder. This provides notice to potential buyers that the property is subject to litigation.

5. Enforcing the Lien

If you are successful in your foreclosure lawsuit, the court will order the sale of the property. The proceeds from the sale will be used to pay off your lien claim, along with any other liens or encumbrances on the property in order of priority.

FAQs About Filing a Lien in California

Here are some frequently asked questions about filing a mechanic’s lien in California:

1. What happens if I miss a deadline?

Missing any of the deadlines related to preliminary notices, recording the lien, serving the property owner, or filing a foreclosure lawsuit can invalidate your lien rights. Deadlines are strictly enforced! Consult with an attorney immediately if you suspect you’ve missed a deadline.

2. Can I file a lien if I don’t have a written contract?

Yes, you can still file a lien even without a written contract. However, it’s significantly more challenging to prove the terms of your agreement and the value of your work. A written contract is always highly recommended.

3. What if the property owner files bankruptcy?

The bankruptcy filing can complicate the lien enforcement process. You’ll generally need to obtain relief from the bankruptcy stay to proceed with your foreclosure lawsuit. Consult with a bankruptcy attorney immediately.

4. How long does a mechanic’s lien last?

A mechanic’s lien is valid for 90 days from the date it is recorded. If you don’t file a lawsuit to foreclose on the lien within that time, it expires, and you lose your lien rights.

5. What is a release of lien?

A release of lien is a document you sign and record once you’ve been paid in full. It removes the lien from the property record, clearing the title. Failure to provide a release of lien after being paid can result in penalties.

6. Can I lien a public works project?

No, you cannot file a mechanic’s lien against public property. Instead, you must file a stop payment notice with the public entity responsible for the project.

7. What is a bonded stop payment notice?

A bonded stop payment notice is a stop payment notice supported by a surety bond. It provides additional security for your claim and can increase your chances of getting paid on a public works project.

8. Can I include attorney’s fees and interest in my lien claim?

Generally, you can only include the reasonable value of your labor, services, equipment, or materials in your lien claim. Attorney’s fees and interest may be recoverable in a foreclosure lawsuit, depending on the terms of your contract and applicable law.

9. What if the property owner sells the property after I record the lien?

The sale of the property does not automatically extinguish your lien. The new owner takes the property subject to your lien. You still need to file a foreclosure lawsuit within the 90-day deadline to enforce your lien.

10. How do I determine the property owner’s name and address?

You can typically find the property owner’s name and address by checking the county assessor’s records or by conducting a title search.

11. What if I am providing materials only?

You have the same lien rights as a contractor who performs labor and provides materials. However, you still must comply with all the requirements for filing a mechanic’s lien, including the preliminary notice and recording deadlines.

12. Do I need an attorney to file a mechanic’s lien?

While it’s technically possible to file a mechanic’s lien without an attorney, it’s highly recommended to seek legal advice. The lien laws are complex, and even a minor error can jeopardize your claim. An experienced construction attorney can help you navigate the process and ensure that your rights are protected.

Navigating the complexities of California’s mechanic’s lien laws requires meticulous attention to detail and adherence to strict deadlines. This guide provides a solid foundation for understanding the process. However, consulting with a qualified construction attorney is always recommended to ensure your lien rights are fully protected. Your hard work deserves to be paid!