A mechanics lien is a powerful tool to secure a contractor’s right to payment, but only if deadlines for establishing and maintaining the lien are met. In this post, we will cover each of these deadlines.
Deadlines Applicable to Preliminary Notice
The first mechanics lien deadline to keep in mind to establish the right to a mechanics lien is the deadline to give preliminary notice.
What is the Deadline for Sending Preliminary Notice in California?
Preliminary notice must be sent within 20 days of commencing work on a project. (Civil Code § 8204.) All claimants that do not have a direct contract with the owner must give preliminary notice to have mechanics lien rights. (Civil Code § 8200.) And even with a direct contract, a contractor must give preliminary notice to the project lender, if there is one. (Civil Code § 8200(e)(1).)
What is the consequence of sending preliminary notice late?
Failure to give preliminary notice within 20 days of commencing work means that the claimant in question will not have mechanics lien rights with respect to amounts owed for work performed more than 20 days before preliminary notice was given. (Civil Code § 8204.)
Deadlines Applicable to Recording a Mechanics Lien
The next mechanics lien deadline to keep in mind is the deadline for recording a mechanics lien. If a mechanics lien is recorded too early or too late it will not be valid.
What is the Earliest a Mechanics Lien May be Recorded in California?
The earliest a mechanics lien may be recorded in California is after the money claimed is due and either after the claimant’s work is complete or claimant will perform no further work unless the claim is resolved. Recording a mechanics lien for payment not yet due will render the lien overstated and thus, likely invalid. (See Civil Code §§ 8430-8434.) Performing contract work after recording a mechanics lien invalidates the lien. (See Civil Code §§ 8412-8414.)
What is the Latest a Mechanics Lien May be Recorded in California?
The latest a mechanics lien may be recorded in California is determined by either actual project completion by all trades, a continuous cessation of labor for 60 days, or the recording of a timely notice of completion of notice of cessation. In the case of actual completion or a continuous cessation of labor for 60 days, the deadline to record a lien is 90 days from the date of actual completion or from the last day of the 60-day cessation of labor. (Civil Code §§8180, 8412) In the case of a notice of completion or notice of cessation the deadline to record a lien is 30 days from the notice for direct contractors and 60 days from the notice for everyone else. (Civil Code §§8182, 8188)
Deadlines Applicable to Foreclosing a Mechanic’s Lien
The final mechanics lien deadline that must be adhered to, in order to exercise mechanics lien rights, is the deadline to file a lawsuit to foreclose the mechanics lien. Failure to timely file an action in superior court to foreclose a mechanics lien will cause the mechanics lien to expire. An expired mechanics lien is not enforceable, and an owner can demand that the claimant record a release of lien whether or not the claimant has been paid.
What is the deadline to enforce a mechanics lien by filing a lawsuit to foreclose the lien in California?
The deadline to file a lawsuit to foreclose a mechanics lien in California is 90 days from the recording of the mechanics lien with the county recorder. (Civil Code § 8460.) This date may be different from the day the lien was submitted for recording. The County will file stamp this date on the recorded lien when it is returned after recording.
Can the deadline to foreclose a mechanics lien be extended?
Yes. The deadline to record a mechanics lien can be extended. But only by the execution of a notice of extension of credit by the claimant – and the owner – which must be recorded before the lien expires. (Civil Code § 8460(b).)