Homepage Fillable Mechanics Lien California Template

File Details

Fact Name Description
Definition A Mechanics Lien is a legal claim against a property for unpaid work or materials provided during construction.
Governing Law The Mechanics Lien in California is governed by California Civil Code Sections 8400-8494.
Eligibility Any contractor, subcontractor, or supplier who has not been paid for work done on a property can file a Mechanics Lien.
Filing Deadline The lien must be filed within 90 days of the completion of work or the last delivery of materials.
Notification Requirement Before filing, the claimant must provide a preliminary notice to the property owner within 20 days of starting work.
Form Requirements The Mechanics Lien form must include specific details such as the property description, claimant’s information, and the amount owed.
Enforcement A Mechanics Lien can be enforced through a lawsuit if payment is not made, typically within one year of filing.
Impact on Property Once filed, a Mechanics Lien creates a cloud on the property title, which can hinder future sales or refinancing.
Release of Lien The lien can be released by the claimant once payment is received or through a court order.

Sample - Mechanics Lien California Form

Recording requested by (name):

____________________________________________

When recorded, mail to (name and address):

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Recorder’s Use Only

CLAIM OF MECHANICS LIEN

(Cal. Civ. Code § 8416)

Declaration of Exemption From Gov’t Code § 27388.1 Fee

Transfer is exempt from fee per GC § 27388.1(a)(2):

recorded concurrently “in connection with” transfer subject to DTT

recorded concurrently “in connection with” a transfer of residential dwelling to an owner-occupier

Transfer is exempt from fee per GC 27388.1(a)(1):

Fee cap of $225.00 reached

Not related to real property

1._________________________________________________ (“claimant”) claims a mechanics lien for the labor or services or equipment or materials described in paragraph 2, furnished for a work of improvement on that certain real property located in the County of ____________________________, State of California, and more particularly described as (address and/or sufficient description):______________________________________________________________

_______________________________________________________________________________________________

2.After deducting all just credits and offsets, the sum of _______________________, together with interest at the rate of ________ per annum from __________________ (date when balance became due), is due claimant for the following labor, materials, services, or equipment: _______________________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

3.Claimant furnished the labor or services or equipment or materials, at the request of _____________________

_________________________________________________________________ (employer, person, or entity to whom labor, materials, services, or equipment were furnished).

4.The name and address of the owner or reputed owner of the real property is/are: _______________________

_______________________________________________________________________________________________

5.Claimant's address is: _______________________________________________________________________

Dated __________________________________ _____________________________________________

Claimant

_____________________________________________

Signature of Claimant or Authorized Agent

_____________________________________________

Print Name and Title

VERIFICATION

I, _______________________________________, am the: __________________________________ (“owner,”

“president,” “authorized agent,” “partner,” etc.) of claimant on the foregoing claim of mechanics lien, and am authorized to make this verification for and on its behalf. I have read the foregoing claim of mechanics lien and know the contents of the claim of mechanics lien to be true of my own knowledge.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Dated __________________________________ _____________________________________________

Signature

NOTICE OF MECHANICS LIEN CLAIM

ATTENTION!

Upon the recording of the enclosed MECHANICS LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.

The party identified in the enclosed mechanics lien may have provided labor or materials for improvements to your property and may not have been paid for these items. You are receiving this notice because it is a required step in filing a mechanics lien foreclosure action against your property. The foreclosure action will seek to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanics lien is release.

BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANICS LIENS GO TO THE CONTRACTORS' STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov.

PROOF OF SERVICE AFFIDAVIT

California Civil Code section 8416

Failure to serve the Mechanic’s Lien and Notice of Mechanic’s Lien on the owner, or alternatively if the owner cannot be served on the lender or direct contractor, shall cause the Mechanic’s Lien to be unenforceable as a matter of law (Civil Code Section 8024(d)). Service of the Mechanic’s Lien and Notice of Mechanic’s Lien must be by (1) registered mail, (2) certified mail, or (3) first-class mail evidenced by a certificate of mailing, postage prepaid, and to a residence or business address for the owner, lender or contractor. Further, a Proof of Service Affidavit (below) must be completed and signed by the person serving the Mechanic’s Lien and Notice of Mechanic’s Lien. This page should be completed (either one of the sections below) and recorded with the County Recorder along with the Mechanic’s Lien and Notice of Mechanic’s Lien.

PROOF OF SERVICE AFFIDAVIT (ON OWNER)

California Civil Code section 8416(a)(7) and (c)(1)

I, ______________________________ (name), declare that I served a copy of this Mechanic’s Lien and

Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail evidenced by a certificate of mailing, postage prepaid, addressed as follows to the owner(s) or reputed owner(s) of the property:

Company/Person Served: ________________________________________________________________

Title or capacity of person served (if appropriate): ______________________________________________

Service address: ________________________________________________________________________

Said service address is the owner’s residence, place of business, or address showed by the building permit on file with the permitting authority for the work.

Executed on ___________, 20_____ (date) at __________________ (city), _____________________

(county), California.

By: _____________________________________

(Signature of person making service)

ALTERNATE PROOF OF SERVICE AFFIDAVIT (ON LENDER OR DIRECT CONTRACTOR)

California Civil Code Section 8416(a)(7) and (c)(2)

I, ____________________________________________________ (name), declare that the owner or

reputed owner cannot be served with a copy of this Mechanic’s Lien and Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail. Pursuant to California civil Code section 8416(c )(2), I served a copy of this Mechanic’s Lien and Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail evidenced by a certificate of mailing, postage prepaid, addressed as follows to the construction lender or direct contractor as follows:

Company/Person Served: ________________________________________________________________

Title or capacity of person served (if appropriate): ______________________________________________

Service address: ________________________________________________________________________

Executed on ___________, 20_____ (date) at __________________ (city), _____________________

(county), California.

By: _____________________________________

(Signature of person making service)

Common mistakes

Filling out the Mechanics Lien form in California can be a straightforward process, but many individuals make common mistakes that can lead to delays or even the rejection of their lien. One frequent error is providing incomplete information. Every section of the form must be filled out accurately. Omitting details such as the property owner's name or the legal description of the property can render the lien invalid.

Another mistake involves incorrect dates. The date when the work was completed or when materials were supplied is crucial. If this date is inaccurate, it can affect the timeline for filing the lien and may lead to complications in enforcement. Always double-check the dates before submitting the form.

People often neglect to sign the form. A Mechanics Lien must be signed by the claimant or their authorized representative. Without a signature, the document cannot be processed. This simple oversight can result in significant delays in claiming payment for services rendered or materials supplied.

Using the wrong format for the legal description of the property is another common pitfall. The description must be precise and should match the records in the county assessor's office. If the description is vague or incorrect, it can lead to disputes over the property in question.

Many individuals also fail to serve the lien properly. California law requires that a copy of the lien be served on the property owner and possibly other parties. Not following the correct procedure for service can jeopardize the enforceability of the lien.

Another mistake is not keeping a copy of the filed lien. It is essential to retain a copy for your records. This document serves as proof of your claim and can be vital if disputes arise later. Without a copy, you may face challenges in enforcing your rights.

Lastly, misunderstanding the deadlines can lead to significant issues. California has strict time limits for filing a Mechanics Lien. If you miss these deadlines, you may lose your right to claim the lien altogether. Always be aware of the timelines associated with your specific situation to avoid this costly mistake.