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Home>Levelset Community>Legal Help>I have had levelset lien a project. As payments come in, do I need to update the lien to reflect the new amount?

I have had levelset lien a project. As payments come in, do I need to update the lien to reflect the new amount?

CaliforniaLawsuitLien DeadlinesLien ForeclosureLien ReleasesLien WaiversMechanics LienPayment DisputesSlow Payment

I sent a lien for our project called RCloud. Since I sent the lien, the GC has made one progress payment. We are still owed $218,602.80 which includes unbilled retention. The GC is asking if I've updated the lien amount to reflect the new balance since they made a payment. Is this something I need to do? Or does the lien amount remain in tact until I'm paid in full?

1 reply

Oct 23, 2020

In California, you only have 90 days from when you record a lien to file a lawsuit to foreclose on the line. Given this relatively short statute of limiations, it is often impractical to continue recording partial releases of the lien as partial payments are made. 

Rather you can give the GC the typical Unconditional Waiver and Release on Final Payment under Civil Code Section 8138 but be sure to include in the exceptions section the amount that is still outstanding.

When you are approaching the deadline to foreclose on the lien, and you are going to have file a lawsuit on the lien, you should record a partial release of the lien around the time you file a lawsuit. However, if it came to filing a lawsuit, I would recommend you retain a qualified construction attorney, who could also advise you on when to record the partial releas. 

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