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Construction Lien

 

CALIFORNIA

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

A construction lien can be enforced by filing a lawsuit to foreclose on the lien. The lawsuit is often very complex and should be processed by an attorney licensed to practice law in the state where the property is located. If you need a referral to a construction law attorney in your area, please contact our office.

The lien will expire after 90 calendar days from the date the lien was filed unless a “Extension of Lien” is filed or the lien is enforced by a foreclosure lawsuit.[1] Even though a lien is considered expired, it will still continue to “cloud” the property title and make it difficult for the property owner to sell the property or obtain a loan until the lien is removed by the person who filed the lien.

Due to expensive litigation costs and overcrowded courts, most contractors use the construction lien as leverage to obtain payment and settle outside of court. In California, a “Notice of Credit” a.k.a. “Extension of Lien” will extend the time a contractor has to file a lawsuit to foreclose for up to a maximum of one year from the date that the construction project was completed.[2] In order to file an extension the property owner must agree and sign the Extension of Lien.[3]


List of Cited Statutes and Case Laws for further research
[1] California Civil Code § 8460.
[2] Ibid.
[3] Ibid.


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