California Construction Lien Laws
A construction lien, often called a mechanic's lien, is a security interest against a piece of property used when work on that property goes unpaid. California's construction lien laws determine when these liens can be used in the state as well as the procedures required for filing. California mechanic's lien procedures are very complicated, so talk to a California attorney if you need legal advice about the state's lien laws.
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Claimants
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Article 14, section 3 of the California Constitution specifically grants "mechanics, materialmen, artisans and laborers" the right to have a lien on any property in which they have provided labor or materials. The specific kinds of workers who are entitled to file a mechanic's lien includes a wide range of professions, such as contractors, equipment leasers, architects, registered engineers, land surveyors and builders or laborers of any kind who contribute to the construction or improvement of a property, according to the California Architect's Board.
Procedures
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Anyone wishing to file a California mechanic's lien must comply with specific procedural requirements. The construction lien process starts with the claimant filing a 20-day notice. This notice informs the property owner that the claimant intends to file a lien. The claimant must then wait at least 20 days after serving the 20-day notice before filing the lien in the county or counties in which the property is located. After the lien is filed, the claimant must then file a lawsuit to foreclose on the lien.
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Requirements
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A California construction lien must contain specific information, or it may not be viewed as valid by a court. The California Architect's Board states that the lien must include the legal description of the property for which work or materials was supplied, the name of the owner, the name of the party requesting the improvement, the amount of money yet to be paid, any annual interest charged, a description of the work or materials provided, and the last date of work performed.
Lien Release
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A valid lien grants the holder a security interest against the named property, and allows the holder to file a lawsuit against the property to recover the unpaid funds. A lien holder can also choose to voluntarily release a lien, but only by signing and delivering a lien release and waiver, according to the California Contractors State License Board. California allows for both conditional and unconditional lien releases. Unconditional means the holder releases the lien because final payment has been tendered by the property owner, while a conditional release is available in liens where partial payment is made.
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