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Can we recored higher amount in the lien and suggest lower amount after?

CaliforniaLien Deadlines

For example: if we recored 95k on the lien can we change it for more money? or maybe can we recored 120k and suggest lower price after? Thank you

2 replies

Mar 31, 2021

First, we should start from this point: A mechanics lien should only be filed for the amount that's owed but not paid. Filing a mechanics lien for more than what's owed can result in serious legal consequences, and California happens to be relatively picky about what amounts can be included in a lien claim. Under CA Civil Code § 8430(a), a California mechanics lien must be filed for the lesser of: (1) The reasonable value of the work provided by the claimant; and (2) The price agreed to by the claimant and the person that contracted for the work.

Here are two articles that discuss mechanics liens, fraud, and when lien amounts might cause some problems: (1) Don’t File Fraudulent Mechanics Liens; and (2) Frivolous Mechanics Liens: Intentionally Fraudulent vs. Honest Mistakes.

With that in mind, a claimant can absolutely settle for less than the amount of their lien claim then release their lien. In fact, that's a pretty common way that mechanics lien claims get resolved. Granted, everyone deserves to be paid what they're owed, and a claimant should never feel like they automatically need to settle their claim for less than what they're owed.

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Mar 31, 2021

An additional note: It's generally doable to adjust the value of a filed mechanics lien via amending the lien as long as the mechanics lien deadline has not yet passed. However, attempts at amending a lien after the lien deadline has passed will generally be unsuccessful. Still - if the lien must be enforced, or if there's some other legal battle over the lien, a claimant should be able to ultimately reduce the value of their claim.

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