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Subrogation, Contractors Fraud, Homeowner Lien

CaliforniaMechanics LienPayment DisputesRight to Lien

If the contractor's company has been paid the intial total for home repairs, submits a supplemental to insurance company, owner of home holds supplemental payment as work/material on supplemental wasn't preformed or materialized in addition homeowner tried to address issues with contractor. 8 months later independent state licensed Engineer investigated and found work not completed/preformed, done poorly leading to more damage, and said case was in process of being subrogated, by insurance company can a lien still be perfected on the home owner? Work by Contractor was completed the first week of February 2020. Same week homeonwer took over residence as contractor finsished up reset after water mitigation.

1 reply

Jul 14, 2020
California's mechanics lien deadline is 90 days after completion of the improvement. So, if the lien was filed within 90 days of completion, then it could be valid. To be sure, completion occurs at the earliest of the following events: (1) Actual completion; (2) Occupation or use by the owner, accompanied by a cessation of labor; (3) Cessation of labor for a continues 60 days; or (4) Recordation of a Notice of Completion or Cessation after the work has ceased for a continuous 30 days. Further discussion on completion, here: When Is A California Construction Project Substantially Complete? What's more - California liens are limited to the lesser of (1) the contract price; or (2) the value of the work performed. So, if a contractor exceeds either of those amounts with their lien, that lien should be invalid. If your contractor has filed a lien on your home, and if there are other compounding issues with defective work, it'd be wise to consult with a local California construction lawyer about how best to respond. You can begin that search here: Find a California Construction Lawyer. Additionally, this article should be useful: A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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