hOW SOON CAN A noi OR A lIEN CLAIM, BOND CLAIM, CAN BE SENT?

2 weeks ago

wE DO MOT WANT TO LET OUR pAST dUE ACCOUNTS GO ON UNTIL THEY ARE DELINqUENT 90+ DAYS.lIKE WE WANT TO SEND A NOI @ 45 DAYS. Is THAT TOO SOON?
THANK YOU!
pAM

Chief Legal Officer Levelset
52 reviews

In California, there are many timing requirements that must be considered when thinking about notices and liens.

Preliminary Notice

In California, all parties on construction projects are required to provide preliminary notice in order to retain the ability to file a lien. Parties who contract directly with the property owner, however, are only required to provide a preliminary notice to the construction lender funding the project, if there is one. When required, this notice should be sent within 20 days of first furnishing labor or materials in order for the claimant to be fully protected. The notice may be sent later, but only protects the value of the labor or materials furnished beginning 20 days prior to the date the notice was sent.

Notice of Intent to Lien

California has no specific requirement with respect to sending a Notice of Intent to Lien. As a completely voluntary document, the claimant can send an NOI whenever s/he may want to do so. Accordingly, there is no “too soon” to send an NOI, although it is likely a best practice to wait until work has actually been performed / money is due.

Mechanics Lien

Mechanics liens have strict deadlines in California, which depends on whether a “Notice of Completion or Cessation” is filed on the job, or not.

For “direct contractors” — which are those who contracted with the property owner directly (a/k/a general contractors), the Claim of Lien must be filed at the earlier of:

  • within 90 days after completion of the work of improvement; or,
  • within 60 days after the owner records a Notice of Completion or Cessation

For everyone else — which includes vendors, subcontractors, suppliers, laborers, etc. — the Claim of Lien must be filed at the earlier of:

  • within 90 days after completion of the work of improvement; or,
  • within 30 days after the owner records a Notice of Completion or Cessation.

Because of these deadlines, and the fact that it can be difficult for some project participants to know when the project has finally completed, it is important for potential lien claimants to make sure that the lien deadline doesn’t pass.

Guest
Anonymous

Thank you for that information.

We are a material supplier, so because it says “within” the 90 or 30 days – that means any of those days we can
file the Claim of Lien? Say for the 90 day instance – on day 46 we can file a Claim of Lien?
Thank you!
Pam

Chief Legal Officer Levelset
52 reviews

Yes, if the other requirements are met a lien can be filed 46 days after the claimant last performed work. The deadline is the last possible day no which the lien claim may be filed. A lien can be filed at any point after the claimant’s work is complete, but before the final deadline as set forth above.

Specifically, ” A claimant other than a direct contractor may not enforce a lien unless the claimant records a claim of lien within the following times: (a) After the claimant ceases to provide work. (b) Before the earlier of the following times: (1) Ninety days after completion of the work of improvement. (2) Thirty days after the owner records a notice of completion or cessation.”

Guest
Anonymous

Hi Nate, OK., I get it, this time!! Thank you. That was very helpful

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