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20 day notice not filed? THis was not presented to me through Levelset

California

I filed a lien through your company and the client is coming back saying that we did not file a 20 day notice. This was not presented to me was I was setting this up through your company. Whay do it do next and can I continue with my lient

3 replies

Nov 8, 2022

If you have a direct contract with the owner of the property, no 20-day preliminary notice is required to enforce a mechanics lien (unless there is a construction lender on the project.) If you are a subcontractor or your contract is with a tenant, then 20-day preliminary notice is required. However, you may have an argument that the owner is estopped from asserting failure to timely serve 20-day preliminary notice as a defense if you can prove that the owner had actual knowledge of your work. You will want to assert these positions and demand payment before the lien expires which is 90 days from recording. If you are not able to secure payment within this period, you will need to file a lawsuit to foreclose the lien to keep it from expiring. If the lien is invalid due to the preliminary notice issue, you still should have other causes of action against your customer.

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Nov 8, 2022

The contract was signed by a contractor. I do know for a fact the customer was completely aware of the contract through emails with the contractor. How should I proceed.

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Nov 8, 2022

There is an argument that the lien is valid based on these facts. Assert this argument and demand payment. It may make sense to send a demand letter through counsel to apply additional pressure.

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