What is a Mechanic’s Lien?

A mechanic’s lien is a hold against a property that is recorded at the County Recorder’s Office by a contractor, subcontractor, or supplier who has not been paid for work performed.  Ultimately, it can result in a foreclosure action and even prevent the refinancing or sale of a property until the lien is satisfied.  Consequently, the complicated procedures, filing deadlines, and statutory notice requirements of a mechanic’s lien must be followed without mistakes for a lien to be effective. 

The “20-Day Lien Notice”

The California Civil Code details the exact procedures that must be followed to enforce a mechanic’s lien.  A strict requirement is the filing and service of the 20-Day Lien Notice with the County Recorder.   The Notice must include the proper names and addresses of the relevant parties.  A failure to name the correct project owner makes the notice ineffective.  However, it may be difficult for a subcontractor or supplier who needs to file a mechanic’s lien to determine who should be named on the 20-day Lien Notice, as the parties involved in a construction project can include not only the owner of the property, but also the general contractor, insurers, adjusters, sureties, and lenders. Because the rules and requirements are so technical, it is very helpful to have the assistance of an experienced attorney in filing a mechanic’s lien.

Enforcing a Mechanic’s Liens by a Lawsuit

In order to get the full remedy of a properly recorded mechanic’s lien, a lawsuit must be filed in the Superior Court of the County where the lien is recorded.  A party claiming lien rights one must be certain that every statement made can be substantiated.  Worse, if the party with the lien rights does NOT file a lawsuit, a property owner can petition the court to release the lien from the property! Should the owner of the property succeed, they may sue for attorneys’ fees in addition to actual money damages.

Other Options for Unpaid Contractors, Subcontractors, and Supplier

The mechanic’s lien is only one remedy for getting paid.  It is important to discuss all viable options with a seasoned real estate attorney when you are trying to obtain payment for work you have performed.  In some cases, there are legal alternatives to the complex and technical – but effective – mechanic’s lien.  If you are a contractor, subcontractor, or supplier who has not been paid, or who is working on a project that is going to be stopped and suspect you may not be paid,  talk to one of the expert real estate attorneys at San Diego Law Firm at (619) 794-0243.  We can help you.

While not all problems can be detected before buying a home, prospective home buyers should take note and hire their own qualified house inspector to help uncover problems that may otherwise go unnoticed.  If you’re thinking about buying a foreclosed home, a HomeInspectorCenter.com blog points out special concerns that you’ll want to address with a professional inspection.

Serious construction defects can have devastating effects on homeowners, financially and emotionally, as well as on commercial property owners.  Our litigation attorneys have invaluable experience in resolving California construction defect cases.  As with any claim, the law applies time constraints to construction defect disputes, so act quickly to protect your investment from being jeopardized.  Reach us at San Diego Law Firm by calling (619) 794-0243.