we are the GC on a job and the lender is requesting lien releases from everyone, and its proving difficult for the temp fencing/toilet rental company. So we are trying to figure out if the company even has lien rights. We are in CA. and from what i have read, they need to provide improvement to have rights, which seems like this doesn’t provide improvement, yet it could be considered a rental…??? Thanks for your advisement.
That's a great question. First, it's worth noting that I won't be able to provide any advice here, but clarifying information on mechanics lien rights should help here. As a general matter, in order for lien rights to arise, there must typically be a permanent improvement to the property. That is, the property must be improved by some work that results in a lasting effect to the project property, and this typically requires some form of "permanent" attachment. Items that are intended to be placed on a project property and removed from the property - that are intentionally temporary - typically do not give rise to lien rights. Of course, that does not mean that higher tiered parties won't demand lien waivers from parties who provide temporary improvements - having a lien waiver in hand is the best way to be sure any later-filed lien claim is resolved quickly. Considering county recorders offices typically have neither the bandwidth nor the authority to investigate each lien claim filed, it's entirely possible that a claimant who does not actually have the right to lien could file a lien claim on the project (even if that lien is ultimately invalid and unenforceable). Unfortunately, that prospect can lead to higher-tiered parties demanding lien waivers from everyone on the job.