If necessary to file a California Mechanic’s Lien, there are several steps you should take after recording the lien the maximize the chance of payment and your ability to enforce the lien. This article covers the recommended actions after a mechanics lien has been recorded.
Note the Deadline to File a Lawsuit to Perfect Your Mechanics Lien
The deadline to foreclose your mechanics lien will dictate your actions and strategy in attempting to get the lien paid before further action is necessary. You have a narrow window where you have gained the leverage of recording the lien on title, but have not been required to spend additional money on an actual lawsuit. The goal is the maximize pressure on your customer and/or the owner to pay you before litigation is necessary.
What is the deadline to file a lawsuit to enforce a mechanics lien?
The deadline to file a lawsuit to enforce a mechanics lien is 90 days from the date that the lien was recorded by the county recorder. In this 90-day window, the lien is valid to cloud title to the property without further action required.
What happens if the deadline to file a lawsuit to enforce a mechanics lien passes?
Failure to file a lawsuit to foreclose a mechanic’s lien within 90 days of recording will result in the lien’s expiration, rendering it unenforceable.
Will an Expired Mechanics Lien Remain on Title?
Yes, even though it is no longer enforceable, an expired mechanic’s lien remains on title until released by the recording party or expunged by a court.
Demand that the Owner Pay Your Mechanic’s Lien
Once a mechanic’s lien you want to make triply sure that all involved parties, and in the case of entities the right people at those companies, are aware of the lien. Sending persistent demands for payment to all involved is important. These demands should attach a copy of the recorded lien and threaten to file legal action to foreclose the lien if you are not paid.
At What Point Should I Prepare to File a Lawsuit to Foreclose a Mechanics Lien?
If 60 days has elapsed since the recording of the mechanic’s lien, it is time to prepare to file a lawsuit to perfect the lien. It will take time to prepare the complaint and to retain an attorney if you don’t already have one. While a basic lien foreclosure lawsuit can be put together relatively quickly, you don’t want to get too close to the deadline before filing. If something goes wrong or there is an unforeseeable delay, the lien could expire.
When Should I Release my Mechanics Lien?
You should only release your mechanic’s lien under three scenarios: if you have been paid in full, if the lien has expired, or if the lien is invalid for another technical reason.
Must I release my expired mechanic’s lien?
If the property owner demands that you do so, yes. Failure, on demand, to release an expired mechanic’s lien enables the property owner to file a petition in court to release the lien. When the court releases the expired lien, attorney’s fees for the cost of the petition will be awarded to the property owner against the party who failed to release the lien.
Must a release of mechanics lien be notarized?
Yes. While a mechanics lien itself need only be signed, a release of mechanics line must be notarized to be valid. This is important, as the county recorder will reject a release of lien that is not notarized resulting in additional costs to release the lien.