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Notice of Completion

I have a question regarding the notice of completion. The final inspection was done just a few days ago. My question is, how could I possibly provide a copy of the recorded NOC to all potential lien claimants if I don't know who they are? Would it be sufficient to express mail it to just my GC? If I don't send it to all the subcontractors, do I still get protected from them filing a lien after 30 days? My property is located in San Luis Obispo County, CA. I called the County Recorder office to ask about the Notice of Completion filing procedure and processing fee. At first, they didn't know what kind of form it was, had no idea about the form's purpose, then the calculated the charge of over $100.00, then they said that it takes 3-4 weeks to process. It makes me a little nervous, please advise, thank you so much!

8 replies

Aug 22, 2019

Hello! You are obligated to serve a notice of the recording of the notice of completion to all of the contractors and suppliers (and other claimants) that served you with a preliminary notice, or that you were in direct privity of contract with. There are tight time constraints that you must be mindful of. A owner can only record a notice of completion on or within 15 days after the date of completion of the project. Within 10 days of the date of the notice of completion is recorded, it must then be given (certified mail or overnight delivery!) to all direct contractors and those claimants that have served you with a preliminary notice. If the notice of completion is not timely or properly recorded or served upon such claimants, then all claimants have 90 days from completion to record a mechanics lien. Best, Chris

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Aug 22, 2019

Thank you so much! We didn’t not receive any preliminary notices. In this case, send only to GC?

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Aug 22, 2019

Definitely send to the GC, but believe it or not, it is not a straightforward analysis and depends on your specific facts and circumstances. You may not have received preliminary notices, but is there a chance that one was served at a business, home, or project address that you may not have received or was refused? If the claimant can prove that they attempted service at a proper address, they may still have a right to assert a lien. Some of your approach may depend on your relationship with your GC and how the project has progressed. Have you received waivers and releases from subs and suppliers along the way? Have you received copies of sub or supplier invoices, or have you otherwise received a list of subs and suppliers that might have been required by the building department? How much money are you withholding from the GC? What are your contractual obligations as far as timing of the release of your final payment to the GC? Does your contract contain indemnity obligations by the GC in the event a claim is made against you or the project down the road? The seemingly simple Q&A can get complex as you can see. Best, Chris

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Aug 22, 2019

Christopher, Hard to believe but we had no written contract with our GC. We haven't received waivers and releases from subs and suppliers along the way. We received some but not all of the copies of sub or supplier invoices, and the list of subs that have been required by the city is submitted by our GC to the building department. We are withholding about 25K from the total of about 240K till all of the small problems are fixed. Everything else is paid. What are some possible other steps that we should take to protect ourselves? The house was under construction for a year and as of now there are no liens, I checked.

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Aug 22, 2019

That is a surprise for $240K worth of improvements. Is your GC licensed?

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Aug 22, 2019

Yes, he is

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Aug 22, 2019

Although we had no signed contract,we did however, had a written budget of the contract, with details of the payment required for the work being done. There was a description of the project, including equipment to be installed, and significant materials that will be used, a list of contractors and their prices. It included change orders and extra work, and approximate start and completion dates.

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Aug 23, 2019

At a minimum, I'd suggest an agreement to confirm the ongoing duties and obligations of your contractor (e.g., warranty obligations, indemnity obligations for any claims by unpaid claimants or their laborers, etc.) and the appropriate final contract and lien waiver releases.

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