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Construction Lien

 

CALIFORNIA

1. Basics of a Construction Lien.
2. Persons Eligible to a Lien.
3. Prerequisites.
4. Time Frame to File a Lien.
5. Enforcing a Lien.
Basics of a Construction Lien

A “Construction Lien” a.k.a. “Mechanics Lien” is a document that is filed to place a lien against a property for unpaid bills arising from a construction project or other form of work of improvement. Contractors, subcontractors, laborers, architects, surveyors, material/equipment suppliers, and many other construction related companies who performed a “work of improvement” can file a construction lien against the real property if they are not paid for their labor and/or materials. A construction lien provides a method for contractors and material/equipment suppliers to obtain payment for their services.

The lien will “cloud” the property title and make it difficult for the property owner to sell the property or obtain a loan until the lien is satisfied or intentionally abandoned by the person who filed the lien. If the contractor is still not paid after filing the lien, the contractor can enforce the lien by filing a lawsuit to foreclose on the property in order to repay the amount owed. Construction liens are only available for private works. For public works, please see Stop Notices and Bond Claim Notices as methods to obtain payment.



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