Full question:
The lenders on this job are distributing progressive payments directly to the owner. The owner is holding moneys from the general contractor, this has been going on practically from the beginnig of the job. I have completed my work. It has been over sixty days now and the owner is holding final pay from the general contractor. The general contractor says they are trying their best to finish owners punch list and owner will not release any funds. We are the painting contractors on this job. A preliminary lein has been filed. At this point shall we follow with a mechanics lein for the remainder, throughout the job we have had to wait 60 to 90 days to receive progressive payments and they have never dispursed the amount we asked for.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: California
Answer:
A mechanic’s lien cannot be recorded until the claimant has completed all work under the subject contract. This means either providing the entire scope of work or being excused from remaining work due to a breach of the contract by the party with whom the claimant contracted. The mechanic’s lien against any individual property must be recorded within 90 days of the completion of the work of improvement at that property.
The California 20-Day Preliminary Notice preserves a lien claimant’s (the person or entity who claims the mechanic’s lien) lien rights on a construction project when the notice is timely served by the lien claimant. The notice MUST be served by the lien claimant (unless the lien claimant was hired directly by the property owner, in which case the contract between the claimant and the property owner serves as the notice) or the lien claimant will not have any lien rights.
The notice should be served no later than 20 days after the lien claimant first provides any benefit to the property, because the notice preserves lien rights for no more than 20 days prior to the date the notice is served through the completion of the contract.
The following is a CA statute:
3116.
Each claimant other than an original contractor, in order to
enforce a lien, must record his claim of lien after he has ceased
furnishing labor, services, equipment, or materials, and before the
expiration of (a) 90 days after completion of the work of
improvement if no notice of completion or cessation has been
recorded, or (b) 30 days after recordation of a notice of completion
or notice of cessation.
3117.
Where the work of improvement is not made pursuant to one
original contract for the work of improvement but is made in whole or
in part pursuant to two or more original contracts, each covering a
particular portion of the work of improvement, the owner may, within
10 days after completion of any such contract for a particular
portion of the work of improvement, record a notice of completion.
If such notice of completion be recorded, notwithstanding the
provisions of Sections 3115 and 3116, the original contractor under
the contract covered by such notice must, within 60 days after
recording of such notice, and any claimant under such contract other
than the original contractor must, within 30 days after the recording
of such notice of completion, record his claim of lien. If such
notice is not recorded, then the period for recording claims of lien
shall be as provided for in Sections 3115 and 3116.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
