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Is our mechanics lien valid?

CaliforniaMechanics Lien

We are flooring company. We filed a lien against a homeowner. The homeowner is claiming the lien in invalid and threatening lawsuit against the company as well as me personally if we don't remove it. These are the specific questions: 1) If a preliminary lien notice was sent a week after the mechanics lien was filed, does it invalidate the lien? 2) If our contractors license was not valid at the time the lien was filed, does that invalidate the lien? The contractors license was valid at the time of material purchase and when the verbal contract for installation services was agreed to. Our contractors license had not been renewed on the dates the work was performed. We hired an independent contractor to install material, who is also a licensed contractor. Do any of these facts invalidate the lien?

3 replies

Jan 29, 2021
I have further clarification: We were hired by the homeowner directly, so as we understand it, we are then considered a general contractor and the 20 day preliminary notice requirements might not apply to us...?
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Jan 30, 2021
I am not functioning as a lawyer representing the person who asked these questions. I am just providing general information under California law. The questioner must obtain his or her own lawyer to assure compliance with the law. General information related to the questions: 1. In California, the 20- day preliminary notice has to be served within 20 days of performance of the work for which a lien claim is being made. When the mechanics lien is recorded has no bearing on the validity of the 20 day preliminary notice. 2. The contractor's license must be in good standing at all times while work is being performed on the project. If the lien is recorded after all work has finished, a license problem at the time the lien is recorded ought not affect the validity of the lien. 3. Hiring an independent contractor to perform your scope of work is subcontracting. When your license is not valid, you cannot perform work - either by your own forces or by a subcontractor.
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Feb 1, 2021

I agree with Bernard. Additionally, regarding your clarification: parties hired directly by the property owner generally won't need to send a preliminary notice, unless there's a construction lender present. If a lender is present, then that construction lender must receive a timely preliminary notice within 20 days of first furnishing labor or materials.

But, if a 20-day preliminary notice wasn't actually required, then failure to send one - or sending one late - would't affect the validity of a mechanics lien claim. Granted, other factors like licensing issues could still pose a serious issue.

I think these resources should be useful to you, as well:

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