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How to notify subs and suppliers of Notice of Completion

CaliforniaNotice of Completion

As a GC,we are filing a Notice of Completion shortly on our current project. The owner has told us there is a newer law he was made aware of that says we have to notify the sub contractors by certified mail. In the past we have simply emailed the notification. 1) Is this true? 2) Do we need to notify sub contractors and/or their suppliers if we already have a signed Unconditonal Upon Final Waiver from them? Thank you for your help, Carrie

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Dec 10, 2019
A notice of completion must be served by a project owner within 10 days of the date the notice of completion is filed for recording and must be served on the the direct contractor(s) and anyone who has served the project owner with a preliminary notice. An exception is that residential property owners do not need to serve a notice of completion so long as the property being improved is a dwelling unit of four or fewer residential units.   The notice of completion must be served by personal delivery; registered, certified or express mail; overnight delivery; or service by a process server.  Out of an abundance of caution, it is suggested to serve any party that has served a preliminary notice. --CN  
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Dec 10, 2019
So am I understanding that even if I have received an Unconditional Final release showing a sub or supplier have been paid in full, we still have to notify them that we have filed a NOC ?
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Dec 10, 2019
You don't HAVE to, but out of an abundance of caution, it is not a bad idea.  The statute simply states:

(a) An owner that records a notice of completion or cessation shall, within 10 days of the date the notice of completion or cessation is filed for record, give a copy of the notice to all of the following persons:

(1) A direct contractor.

(2) A claimant that has given the owner preliminary notice.

(b) The copy of the notice shall be given in compliance with the requirements of Chapter 2 (commencing with Section 8100 ) of Title 1.

(c) If the owner fails to give notice to a person as required by subdivision (a), the notice is ineffective to shorten the time within which that person may record a claim of lien under Sections 8412 and 8414 .  The ineffectiveness of the notice is the sole liability of the owner for failure to give notice to a person under subdivision (a).

(d) For the purpose of this section, “owner” means a person who has an interest in real property, or the person's successor in interest on the date a notice of completion or notice of cessation is recorded, who causes a building, improvement, or structure, to be constructed, altered, or repaired on the property.  If the property is owned by two or more persons as joint tenants or tenants in common, any one or more of the cotenants may be deemed to be the “owner” within the meaning of this section.  However, this section does not apply to any of the following owners:

(1) A person that occupies the real property as a personal residence, if the dwelling contains four or fewer residential units.

(2) A person that has a security interest in the property.

(3) A person that obtains an interest in the property pursuant to a transfer described in subdivision (b) , (c) , or (d) of Section 1102.2 .

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Dec 10, 2019
You don't HAVE to, but out of an abundance of caution, it is not a bad idea.  The statute simply states:

(a) An owner that records a notice of completion or cessation shall, within 10 days of the date the notice of completion or cessation is filed for record, give a copy of the notice to all of the following persons:

(1) A direct contractor.

(2) A claimant that has given the owner preliminary notice.

(b) The copy of the notice shall be given in compliance with the requirements of Chapter 2 (commencing with Section 8100 ) of Title 1.

(c) If the owner fails to give notice to a person as required by subdivision (a), the notice is ineffective to shorten the time within which that person may record a claim of lien under Sections 8412 and 8414 .  The ineffectiveness of the notice is the sole liability of the owner for failure to give notice to a person under subdivision (a).

(d) For the purpose of this section, “owner” means a person who has an interest in real property, or the person's successor in interest on the date a notice of completion or notice of cessation is recorded, who causes a building, improvement, or structure, to be constructed, altered, or repaired on the property.  If the property is owned by two or more persons as joint tenants or tenants in common, any one or more of the cotenants may be deemed to be the “owner” within the meaning of this section.  However, this section does not apply to any of the following owners:

(1) A person that occupies the real property as a personal residence, if the dwelling contains four or fewer residential units.

(2) A person that has a security interest in the property.

(3) A person that obtains an interest in the property pursuant to a transfer described in subdivision (b) , (c) , or (d) of Section 1102.2 .

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