The population of California has been steadily on the rise, and plenty of construction projects are starting everyday. However, due to many reasons, the customers sometimes are not willing to pay money on time. In that case, you can file a mechanics lien. Here’s everything, you need to know about California mechanics lien law :
Who is eligible to file? : As per the California Law, direct contractors, laborers and also the subcontractors are eligible to file a mechanics lien. Also, all those parties who have supplied any material to the construction can also file a lien. However, in all cases, the work must be authorized.
Procedure: California Laws are very strict, Hence, it is important, that you comply with all the formalities while filing your claim. Generally, all mechanics lien must at least contain the name of the owner of the property and the address. You should also describe in brief, the work which has been performed on the property.
Deadline: The deadline to file a lien varies from state to state. Generally, in most states, the deadline is calculated from the time the material was supplied to the project. However, in California, the deadline is calculated from the time the project was completed. The deadline is 90 days from the date of completion of the project. And sometimes, the contractor releases a formal notice declaring the date of completion. In such a case, you have to file the lien within 30 days from the date of the notice. However, in case of general contractors, it is 60 days instead of 30.
License: As per California Law, only registered contractors can file the claim. You should be authorized to do the work which you are doing.
How long is the lien effective: In California, this time period is quite short. The lien should be exercised within 90 days from the date of the filing of the lien. After 90 days, it will expire. However, in some cases, it can be extended, if both the owner and the claimant agrees. But, it can be extended only up to 1 year and not more than that.
Unpaid workers: Most people are not unaware of this rule. If you owe money to any of your workers , then you have to mention it in the preliminary notice. The name of the worker and the amount of money which you owe to him, should be clearly mentioned. You should also attach a copy of the payroll slip.