Mechanics’ liens and stop notices are essential tools in the construction industry, ensuring that contractors, subcontractors, and suppliers receive payment for their work. However, they can also become a source of legal disputes. Whether you need to file a lien, enforce it, or remove a wrongfully filed lien, having a knowledgeable real estate attorney on your side is crucial.
In California, a mechanics’ lien is a powerful legal remedy that allows contractors, subcontractors, and suppliers to secure payment by placing a claim against the property they have worked on. To properly file and enforce a mechanics’ lien, the following steps must be taken:
Preliminary Notice – Subcontractors and suppliers must serve a Preliminary 20-Day Notice on the property owner, general contractor, and lender within 20 days of first providing labor or materials.
Recording the Lien – A mechanics’ lien must be recorded with the county recorder’s office where the property is located within 90 days of project completion or 60 days after a Notice of Completion is filed.
Serving the Lien – The lien claimant must serve a copy of the lien to the property owner within a reasonable time after recording.
Enforcing the Lien – If payment is not received, a lawsuit to foreclose on the lien must be filed within 90 days of recording the lien. Failing to do so will render the lien invalid.
Stop Notices – In addition to liens, unpaid subcontractors and suppliers can issue a stop notice to the lender or public entity funding the project, requiring that funds be withheld until payment is made.
Property owners, developers, and general contractors often face the issue of wrongfully filed mechanics’ liens, which can delay property sales and refinancing. If you believe a lien has been wrongfully filed against your property, the following legal remedies are available:
Demand for Release – If the lien is invalid, you can send a written demand to the claimant requesting a release. If ignored, further legal action may be necessary.
Petition for Lien Release – Property owners can file a petition with the court to remove an invalid lien. The court may require the lien claimant to prove its validity or risk removal.
Bonding Off the Lien – Posting a lien release bond with the court allows a property owner to remove the lien from public records while resolving the dispute.
Legal Action for Wrongful Liens – If a lien is filed without merit, the property owner may sue the claimant for slander of title, wrongful lien filing, and recover attorney’s fees and damages.
Navigating mechanics’ liens and stop notices requires expertise in California real estate law. If you need to file, enforce, or remove a lien, contact Borna, an experienced real estate lawyer, for a consultation.
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Have questions or need legal assistance with your real estate matters? Contact BH Real Estate Law today. Our team is ready to provide expert guidance and personalized solutions. Reach out via phone, email, or visit our office
