If you’re in California as a contractor, you’ve probably heard of how you can file for a mechanic’s lien should a client not pay you. However, there are plenty of certain stipulations you’ll want to watch for when it comes to this. The timing of how soon you file your lien, and whether or not you provide a 20-day preliminary notice for example can make or break the ability to file the lien itself at the end of the job.
Therefore, you’ll want to make sure you do this, but there are even other steps that you’ll want to do take. In this guide, we’re going to tell you how you can file for a Mechanic’s Lien on bicanet.com within legal time limits and keep the lien enforcement procedures at bay.
It All Starts with a Preliminary Notice
In the state of California, you don’t want to be an old prude raisin, and think that you can just file a lien on your service and materials if you haven’t properly notified the owner that you are going to secure the right to do so if they don’t pay. Therefore, you want to ensure that you file a preliminary notice to the property owner, the lender, and even the general contractor (in the case that you’re a subcontractor or supplier).
This notice has to be filed within the first 20 days that you start work and will cover the 20 days. However, the claim for the notice will only secure you for your rights to file on the last twenty days, so if you work a full 90-day project, then you’re not going to be covered.
It’s All About the Timing of the Lien
When it comes to recording a mechanic’s lien, you can’t record one until the work is completely finished that was part of the original contract that you were a part of, or if you weren’t able to finish the work because the project was shut down for example. If you file too early or too late, then you can actually forfeit your rights and even face penalties or fines in the face of the courts so you won’t be able to file the mechanic’s lien, and not only will your claim be denied, but it can definitely hinder your income and reputation as a result.
A notice must be completed within 60 days as a general contractor, while a subcontractor must file a lien and have it recorded within 30 days. That’s because the owner needs to receive an owner of completion within 10 days of the project to be completed or the work to be finished. In the case that the project was shut down, the lien should be filed immediately.
Conclusion
If you’re in California, you may face a few stingy people that don’t want to pay, and this is perfectly normal. However, there are ways that you can reclaim your rights to file a mechanic’s lien. The BICA helps contractors be able to secure their lien rights and have helped more than 2.1 million clients be served with over a hundred thousand releases. They will give you the best guidance so that you can file your lien properly and on time as well.
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