Tuesday, September 7th, 2010, 05:27 am. PST

A Homeowner’s Guide to Preventing Mechanic’s Liens
site admin posted in Construction Law on November 15th, 2005

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There is a lien on your property - now what?

There are a number of reasons a lien might be invalid; for example, the work was not completed or the supplies were not incorporated into the structure. If a lien is placed on your home, you may want to consult an attorney for help in releasing the lien or identifying these issues.

Often, many lien claims are invalid because the contractor, subcontractor or materials supplier has failed to meet the required timelines for filing the claim. Review the Lien Requirements Checklist to determine if the claimant followed the required timelines.

Lien Requirements Checklist

Check to see if the Preliminary 20-Day Notice was given to you within the strict time frames.

A subcontractor or materials supplier has until 20 days after beginning work or delivering materials to serve you a Preliminary 20-Day Lien Notice. If the notice is late, the claimant loses lien rights for work done or materials delivered more than 20 days before the notice. The claim against your property isn’t valid if this time frame is not followed. Laborers don’t need to give you the 20-Day Notice.

Check to see if the potential lien claimant filed the mechanic’s lien within the legal time frame.

The potential lien clamant must record the mechanic’s lien within 90 days of:

  • Completion of work
  • When owner began using the improvement,* or
  • When owner accepted the improvement.

    • If the potential lien claimant fails to record the mechanic’s lien within the appropriate timeframe, the lien isn’t valid. Once a mechanic’s lien is recorded, it attaches to your title and must be removed.

    As previously mentioned, if you recorded a Notice of Completion, a prime contractor has 60 days to record a lien while a subcontractor or materials supplier has 30 days to record a lien.

    _____________
    *This point is often hard to verify because the homeowner is often occupying the residence during construction. You might want to contact an attorney for assistance on this point.

    Check with the Superior Court to see if the subcontractor or materials supplier filed a timely Lien Foreclosure Action.

    A lien foreclosure action is a lawsuit to foreclose the mechanic’s lien. The lien claimant must file a lien foreclosure action within 90 days of the date that he or she recorded the mechanic’s lien. Often a lien claimant with a valid claim will fail to follow through, making the lien invalid.

    If the contractor, subcontractor or materials supplier fails to follow any of these strict time frames, you can petition the Superior Court to remove the lien.

    Be aware that, although anyone can record a mechanic’s lien, unlicensed contractors cannot foreclose on a mechanic’s lien if the work is valued at more than $500.

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