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Can a Renter, Property Manager or Family Member sign the work authorization and can we still get a valid Mechanics Lien?

CaliforniaMechanics Lien

10% of the time the owner of the property is not available / out of the country... we provide emergency dry-out services if we wait many times it creates more problems. They usually call the owner and get permission to sign the agreement. When this happens it is usually the Renter, Property Manager or Family Member that signs the work authorization. When this is the case can we still get a valid Mechanics Lien? and do we need to do anything special or different to protect our Mechanics Lien Rights.

3 replies

Feb 18, 2020

If your contract is not with the owner, then you should send preliminary notice to the owner within 20 days of commencing work. This will help protect your lien rights. The owner can still post a notice of non-responsibility under California Civil Code under Section 8444 within 10 days to preclude a mechanic's lien for work they were not aware of, but if they are not available/ out of the country it is unlikely that they will do so. Always better if you can get express authorization from the owner. But do you best to ensure the have notice of the repairs and send a preliminary notice to further protect lien rights.

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Feb 18, 2020

Generally, a claimant in California is entitled to a mechanics lien when s/he provides "work authorized for a work of improvement" and is unpaid for that work. California defines work that is authorized for a work of improvement as work: "provided at the request of or agreed to by the owner. (b) . . . provided or authorized by a direct contractor, subcontractor, architect, project manager, or other person having charge of all or part of the work of improvement or site improvement." Further, California allows that "[a]n act that may be done by or to a person under this part may be done by or to the person’s agent to the extent the act is within the scope of the agent’s authority." Finally, a claimant in California is generally allowed to file a mechanics lien against the owner's interest in the property even when the improvement is a tenant improvement unless the owner posts and records a "Notice of Nonresponsibility" within 10 days of the date on which the owner had knowledge of the work of improvement. A claimant filing a lien in when an agent of the owner signed the contract can proceed as regularly set forth by California mechanics lien law, but it is always good practice to send a preliminary notice to the owner within 20 days of first furnishing labor or material to the project. And, if the party signing the contract is not an agent of the owner, a preliminary notice should definitely be sent.

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Feb 18, 2020

Peter and Nate Thank you for both of your insights! They lead me to a few follow up questions. What is considered an "Agent of The Owner"? Do we need to document the "Agent of The Owner" in a special way in order to preserve our Lien Rights? We always have a contract signed and If they fall out of the Agent of the Owner or Owner status we will defiantly send a Preliminary Notice. Joseph

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