California Lien Frequently Asked Questions

What is a California Mechanics’ Lien Claim?

In California, liens filed on private property are known as Mechanic’s Liens. When a California mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

Who can file a California Mechanics’ Lien Claim?

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file a California mechanics lien. If a company supplies material to a material supplier, they are not eligible to file a California mechanics lien claim.

Are pre-lien notices for California Mechanics’ Lien Claims required?

Yes. Within 20 days of the commencement of work on the property, subcontractors and suppliers should provide written notice to the owner, the general contractor and the construction lender that they are performing work on the property. If the notice is served late, then the claimant can claim a California construction lien for the value of the labor or materials provided in the 20 days preceding the service of the notice and thereafter.

Can you file a California Mechanics’ Lien Claim without a pre-lien notice?

Pre-lien notices are required to be served prior to filing a California mechanics’ lien claim.

When should a California Mechanics’ Lien Claim be filed?

Subcontractors and materialmen must file a California claim of lien within 30 days after a notice of completion or notice of cessation is recorded, or if no recording of completion or cessation is accomplished, within 90 days after the completion of the work of improvement.

How much does it cost to file a California Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves California Mechanics’ Liens (which includes a written notice of intent to claim a lien, if necessary, as well as a verified statement of lien) for a fee of $250.00.  Pre-lien notices are not included in the $250.00 price, but can be filed for a fee of $50.00.

Do I need a written contract to file a California mechanics lien claim?

No.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are filing a California mechanics lien.

How does filing a California Mechanics’ Lien Claim help me get my money?

On a private project, the California mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the construction lien.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves California Stop Notices for a fee of $100.00.  A Stop Notice can be filed on both public and private projects, and is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid. The 20 day pre-notice is required to be eligible to file a Stop Notice.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves California Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the lien claim changes.  Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves California Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  California law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves California Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves California Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.