If you’re a contractor in California, you already know how crucial it is to get paid for your work. A mechanics and materialmen’s lien is a powerful tool that ensures you receive timely payment for labor and materials provided on a construction project. But here’s the catch—filing one correctly in California requires you to follow every step in the process. Missing even a single step can render your lien invalid.
This article lays out the key steps, plain and simple, to help you file a valid mechanics and materialmen’s lien in California.
What is a Mechanics and Materialmen‘s Lien?
A mechanics lien is a legal claim against a property for unpaid work or materials supplied during its improvement. It’s a way for contractors, subcontractors, and material suppliers to secure payment directly from the value of the property they worked on. However, unless correctly filed, it won’t hold up in court, so attention to detail is essential.
Step 1: Confirm Your Right to File a Lien
What does this mean?
Not every contractor or supplier is automatically eligible to file a lien. Generally, you must have a direct contractual relationship with the property owner, general contractor, or someone authorized by the owner. If you are working as a subcontractor, make sure there is documentation tying your work to the improvement of the property.
Key Tip:
Before moving forward, make sure your work or supplies were for a property improvement project. Maintenance work, in most cases, does not qualify for a mechanics lien in California.
Step 2: Serve the Preliminary Notice
Why is this important?
Contractors, subcontractors, and suppliers who don’t have a direct contract with the property owner must provide a Preliminary Notice within 20 days of starting the work or supplying materials. This notice informs the property owner that you intend to seek payment for your contributions to the project.
Even if you’re working under a direct contract, serving the Preliminary Notice is a good precaution.
How to Serve:
- Identify the property owner, lender, and general contractor.
- Send the notice via certified mail with return receipt requested to all three parties.
Warning:
Failing to serve the Preliminary Notice is one of the most common reasons mechanics liens are rejected in California. Don’t skip this step!
Step 3: Record the Mechanics Lien on Time
Deadline Matters
Timing is everything. You must record the mechanics lien within:
- 90 days after completing work or supplying materials if no Notice of Completion or Cessation is filed.
- 60 days from the filing of a Notice of Completion or Cessation.
Missing these deadlines will make your lien invalid. File your lien with the county recorder’s office where the property is located.
What to Include in the Mechanics Lien Form:
- The name of the property owner, general contractor, and your business.
- A property description (must match the legal property description).
- The amount owed to you.
- A verification statement signed under penalty of perjury.
Filing Fee:
Be prepared to pay a small fee for recording the lien. This varies by county.
Key Tip:
Double-check the information on your lien form before submission. Even minor errors (like a misspelled name or incorrect address) can cause problems.
Step 4: Serve the Mechanics Lien
Who Needs to Be Notified?
Once the lien is recorded, a copy of the lien must be served to the property owner via certified mail within 5 days of recording it.
Why This Matters:
Serving the lien ensures the property owner is aware of your claim. Without notification, the lien can’t be enforced.
Step 5: Enforce the Lien (If Necessary)
Filing a Lawsuit to Enforce the Lien:
If the property owner still hasn’t paid their dues, you can file a lawsuit to enforce the lien. You have 90 days from the date of recording the lien to begin this legal process.
If You Don’t Sue:
Failing to file within the 90-day deadline will render your lien invalid. This step often requires the help of an experienced attorney.
Key Tip:
When filing a lawsuit to enforce the lien, always check that your lien was recorded and served correctly to avoid complications.
Final Thoughts
Filing a mechanics and materialmen’s lien in California is a detailed process, but when done correctly, it serves as a powerful security measure to ensure you get paid for your work. Here’s a quick recap of the must-follow steps:
- Confirm your right to file a lien.
- Serve the Preliminary Notice within 20 days.
- Record the lien on time (60–90 days, depending on scenarios).
- Serve a copy of the lien to the property owner within 5 days.
- File a lawsuit to enforce the lien within 90 days (if unpaid).
Missing even one step can invalidate your lien, so stay organized and follow the timelines precisely.
Want to know more about California lien rights, listen to our podcast link here.
Need help navigating your lien rights? Give us a call at 909-284-9005, to ensure every step is handled correctly. It’s your money—don’t leave it to chance!
