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Notice to the Lien Agent

CaliforniaJoint ChecksMechanics LienPreliminary Notice

We sent a Notice to the Lien Agent, which is causing the property owner some concern. First, he thought it was an actual lien and wanted to understand why the notice was sent and who the lien agent is. I was able to reassure him that it was just a notice. However, although our payment from Cape Fear Solar is not due until June, the owner is refusing to pay them until they pay us so that he can guarantee his project will not be subject to a lien. He said they are a non-profit organization and he needs to protect himself. I tried to explain that he is required to pay Cape Fear per their agreement so that Cape Fear can then pay us as the supplier. This did not go over with him. Do you have any suggestions on how I can properly resolve this with the owner?

2 replies

Apr 24, 2020
If an owner is nervous about their contractor paying subcontractors, then utilizing joint checks could be a really easy fix there. Additionally, offering to issue conditional lien waivers before payment is even made might ease their fears as well. Ultimately, communicating that everyone's committed to working on the job together and staying in communication throughout the job can be useful, too. Preliminary notices like the Notice to Lien Agent are designed to help avoid problems, not to compound them. So, working to make sure everyone's on the same page can ultimately end up strengthening the relationships on the job rather than work against them. These resources should be useful to you: - What Is A Joint Check Agreement? - Someone Just Called Asking About My Preliminary Notice – What Should I Say? - 4 Ways to Explain Preliminary Notices and Mechanics Liens to Your Coworkers
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Apr 27, 2020
Joint check and always serve preliminary notice when material is contracted for by General. If you file a mechanics lien, in Calif. you must file an action to foreclose the lien within 90 days.
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