Home>Levelset Community>Legal Help>I am a general contractor and want to place a lien. I may have not sent the 20days notice to the lender. However the job is not completed and the customer may be in process of refinancing . Would a 20day notice to renew lender would protect my previous unpaid fees and cost?

I am a general contractor and want to place a lien. I may have not sent the 20days notice to the lender. However the job is not completed and the customer may be in process of refinancing . Would a 20day notice to renew lender would protect my previous unpaid fees and cost?

CaliforniaPreliminary Notice

Want to place a lien but may have not sent the 20 days notice to the present lender. The comany that i did the work for is about to refinance with a new lender. I have giving the notice to the comany but am not sure that, they have sent it to the lender. During the course of construction almost two and half years ( six month project) they have delayed payment by months at times. I want to place the lien regardless. However if i do place a lien after refinancing by the customer would that have any effect. Thank you!

1 reply

Dec 19, 2018

That's an interesting situation. First, as mentioned above, California direct contractors are required to send preliminary notice to construction lenders within 20 days of first furnishing labor or materials. Based on § 8200 of the California Civil Code, sending notice to the lender is a prerequisite to filing a mechanics lien - so failure to provide such notice could very likely result in the inability to file a valid lien. Of course, in California, preliminary notice can be sent late, and late notice will preserve the right to lien for the work provided 20 days prior to sending the notice, as well as any work that comes after it. As far as the effect of refinancing - that should have little effect as to what is lienable, though it could affect who all must receive notice. The following resources should be helpful when looking at California's lien and notice rules: (1) California mechanics lien and notice FAQs, and (2) Guidelines to California's 20-day Preliminary Notice.

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