Mechanics Liens
Mechanics Lien Attorneys
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Mechanics Liens
Mechanics Lien Attorneys
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A mechanics lien is a security interest in real property that can be used by a person or company who has not been paid for work that was done in connection with that property. It is one form of construction remedies for nonpayment. Under mechanics lien law, the unpaid person or company is called a claimant. Despite the name “mechanics lien,” the most common claimant is a prime contractor who was not paid for the work done for the property owner. Subcontractor, suppliers of materials, or even laborers can also be claimants.
The lien is recorded against the property with the county recorder and becomes part of the property’s title history. It creates a lien just like a mortgage. The lien has several implications, the most significant of which is that it gives the claimant the right to foreclose on the property in order to generate money to pay the amount claimed in the lien. In California, after recording the lien, the claimant then needs to go to court and file an actual lawsuit to win a judgment ordering the property to be sold by the Sheriff.
Most mechanics lien recordings don’t end up in an actual foreclosure due to the effort involved with a lawsuit, but the mechanics lien is a powerful remedy against the owner of the property. As long as the lien is in place, the owner will not be able to refinance or sell the property without paying off the amount of the lien.
LS Carlson Law is experienced in the area of mechanics lien law. We have assisted contractors in preparing, recording, and enforcing proper mechanics liens. We have also helped homeowners who have had mechanics liens filed against them by unscrupulous claimants.
Frequently Asked Questions
The deadlines for filing a mechanics lien in California are complicated. The deadlines for a direct contractor (hired directly by the owner) are different than for subcontractors or other claimants. The last date to record a mechanics lien depends on whether the claimant is a prime contractor or another type of claimant, and on whether the owner records a notice of completion or notice of cessation is recorded. If you are a contractor or subcontractor, it is important to be aware of the deadlines and monitor the dates.
Yes. To pursue foreclosure of a mechanics lien, the claimant must file a lawsuit within 90 days after recording the mechanics' lien. If you are a contractor or subcontractor who has filed a mechanics lien, it is extremely important to consult with an attorney as soon as possible to ensure that your rights are protected.
What if you are a property owner and you didn’t hire the claimant? In California, a subcontractor, supplier, or even laborer can be a claimant and record a mechanics lien if they were not paid. In a typical project, the property owner hires a general contractor. Many, if not most, subcontractors are hired by the general contractor to do parts of the job, not by the homeowner. If the general contractor fails to pay the subcontractor, the subcontractor can seek payment via a mechanics lien against the property (provided that certain procedural steps were followed).
The most frustrating example in mechanics lien law is when a property owner pays the general contractor, and the general contractor then fails to pay the subcontractors. In order to clear the mechanics lien, the property owner may have to pay the subcontractors for the work they did even though the general contractor was already paid for that same work. If you find yourself in this position, you need legal representation immediately to protect your rights in your property.
In order to enforce a mechanics lien, certain claimants are required to provide a written preliminary notice to the owner of the property (and to the construction lender if one exists). There are specific deadlines to file this notice. This ensures that the property owner and lender is aware of the subcontractors. A claimant who is directly hired by the owner is not required to provide a preliminary notice to the property owner.
Our Proven Approach
No matter what problem you need to solve, our dynamic team will present a creative, intelligent solution based on our decades of experience and proven success. We bring a wealth of industry knowledge and a deep understanding of nuanced business and real estate issues. We’re well-equipped to handle your most challenging matters, whether at the negotiating table or in the courtroom.
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Initiating Our Representation
At our initial consultation, we will discuss the facts, timeline of events, and any documents you provide regarding your construction dispute and discuss what legal strategies and options you may have based on the information provided to us during the initial consultation. Then, at the outset of the representation, we will send a formal Notice of Representation to the opposition to notify the relevant parties that you are represented by counsel and to direct all forms of communication to us.
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Due Diligence Analysis
The next stage of our representation is for you to provide us with all relevant information and documents so that we can begin the due diligence analysis of your case. Then, our attorneys will carefully review all your documents to ensure that the strategy discussed with you during your initial consultation is still the best strategy, or whether we need to alter that strategy to pursue your goals more effectively.
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Dispute Resolution
Our goal is to help you resolve your dispute as quickly and efficiently as possible. Depending on the unique set of facts in your case, dispute resolution could take the form of informal settlement negotiations, mediation, or filing or defending a lawsuit. Regardless of the type of dispute resolution that is the best legal strategy for your case, our attorneys will zealously advocate on your behalf throughout the dispute resolution process.
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We’re efficient problem-solvers, and our goal is to meet your goals. We’ve helped countless clients reach successful solutions to tough issues so they can move on with their business or personal endeavors.
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