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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.
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