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what is verbage if contractor has not been paid in full per sec 8200 notice

I am interested in hiring you to start filing all the requirements for notices and liens. I read the sample preliminary 20-day notice. We are giving notice to homeowner. The First sentence says “EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL, etc. this scary.

1 reply

Aug 16, 2018

I'm glad you're considering zlien! In California, a preliminary notice must contain specific language that is set out by the California Civil Code at § 8202. Unfortunately, some of the required language can be scary. However, without that specific language, the notice will be ineffective to preserve the right to secure payment. Specifically, the following statement must appear on California preliminary notices in bold: “NOTICE TO PROPERTY OWNER EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL, if the person or firm that has given you this notice is not paid in full for labor, service, equipment, or material provided or to be provided to your construction project, a lien may be placed on your property. Foreclosure of the lien may lead to loss of all or part of your property. You may wish to protect yourself against this by (1) requiring your contractor to provide a signed release by the person or firm that has given you this notice before making payment to your contractor, or (2) any other method that is appropriate under the circumstances. This notice is required by law to be served by the undersigned as a statement of your legal rights. This notice is not intended to reflect upon the financial condition of the contractor or the person employed by you on the construction project. If you record a notice of cessation or completion of your construction project, you must within 10 days after recording, send a copy of the notice of completion to your contractor and the person or firm that has given you this notice. The notice must be sent by registered or certified mail. Failure to send the notice will extend the deadline to record a claim of lien. You are not required to send the notice if you are a residential homeowner of a dwelling containing four or fewer units.”

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