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Is it too late to file a notice of credit?

I filed a mechanic’s lien on 12/13/19 and my 90 days to enforce the lien was up last Thursday 3/12/20. I filed for a notice of credit “lien extension” through Levelset yesterday 3/16/20. Will the extension be valid?

1 reply

Mar 17, 2020

There are a couple things to consider with respect to California mechanics lien enforcement deadlines, and extensions of credit. First, the deadline to initiate a mechanics lien enforcement action in California is 90 days after the lien is filed. This deadline is generally absolute, and if "the claimant does not commence an action to enforce the lien within that time, the claim of lien expires and is unenforceable." However, California does allow for the time period for enforcement to be extended in certain circumstances. The general 90-day deadline does not apply when the claimant and owner agree to extend credit, and the notice of credit is recorded either within the same 90-day time period, or prior to a "purchaser or encumbrancer for value and in good faith acquires rights in the property." This can extend the period of enforcement of the lien to 90 days from the expiration of the extension of credit, but no longer than 1 year after the completion of the project. So, an "extension" can be recorded after the 90-day deadline elapses and still work to extend the enforcement deadline. But, in order to be effective the property owner has to agree to the notice of credit and sign the document for recordation.

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