Articles
Mechanic's Liens in California
By: Owen Chen
Updated: February 12, 2023
Disclaimer:
I am not a lawyer. This article is general information and not legal advice. Consult a qualified legal professional for your specific situation. No liability is assumed for any consequences resulting from using this information.
What is a mechanics lien?
People involved in construction on a property (usually builders, contractors, and material suppliers) can file a mechanics lien in order to guarantee that they receive payment, even if their employer is not necessarily the owner of the house.
Why is resolving a mechanic's lien important?
When it is filed on a property that the owner intends to sell, the lien generally must be resolved before people are willing to buy the house. This is because buying a house with a lien means being responsible for the debt. A mechanics lien can sometimes also result in the foreclosure of a property without compensation to the owner.
How can I resolve a mechanic's lien?
Conditional Waiver and Release Upon Progress/Final Payment: The person filing the lien (claimant) agrees that the lien will be dismissed upon payment.
Unconditional Waiver and Release Upon Progress/Final Payment: The claimant agrees to dismiss the lien (usually because payment has already been received)
How can I prevent a mechanic's lien?
Mechanic's liens can generally be avoided if all people involved in construction on your property are paid. This can be done by clearly defining a payment schedule in a written contract, as well as making sure to only hire licensed contractors and subcontractors who have a good reputation when it comes to making payments (usually done by checking for any lawsuits filed against them). Additionally, file a notice of completion at the County-Clerk Recorder's Office before 15 days have passed after construction is completed.
Can an unlicensed contractor file a mechanic's lien?
If the work requires a license, then the contractor generally must have the appropriate license to fire a mechanic's lien.
Additional Resources:
https://www.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/