Is the pre lien valid? I have a new build. Bank discouraged me from writing 2 party checks etc. because they said I needed to trust the contractor. I am building in Paradise, CA after the Camp Fire. Contractor being investigated by CSLB in CA. Lawyer I contacted said that it would be better to settle with lumber company than fighting the validity of the lien because I don't have any money. My bank loan is barely covering cost of build and now will withhold funds because of the filed lien.
Even with a technical defect, most court's likely would rule that the lumber supplier's preliminary notice is sufficient to establish its lien rights because the notice - even without an estimated value, put you on notice that they were supplying materials to the project. Having contributed these materials, most courts would find it unjust for the lumber company not to be compensated – or to lose their lien rights based on this technicality. Assuming that the lumber company timely files a lawsuit to perfect its lien, probably best to pay the lien off and go after the GC. But if the lumber company allows its lien to expire rather than foreclosing you may be off the hook. So, it may be worth waiting the 90 days from recording to see what happens. This may mean you are ultimately liable for filing costs. But these costs are low enough that it is likely worth the risk in order to potentially avoid the lien altogether.