📋 What is a Mechanic's Lien?

A mechanic's lien is a powerful tool for California contractors, subcontractors, and material suppliers who haven't been paid. By recording a lien against the property where you provided labor or materials, you create a "cloud on title" that prevents the owner from selling or refinancing until you're paid.

Who Can File a Mechanic's Lien?

🛠 General Contractors

Direct contractors with a written or oral contract with the property owner

🔧 Subcontractors

Subcontractors hired by the general contractor (with proper preliminary notice)

📦 Material Suppliers

Suppliers who furnished materials used in the work of improvement

🔨 Equipment Lessors

Companies that rented equipment used on the project

🚨 Critical Deadlines

California mechanic's lien law has strict deadlines that cannot be extended:

  • 20 Days: Serve preliminary notice within 20 days of first furnishing labor/materials (subcontractors and suppliers)
  • 90 Days: Record the mechanic's lien within 90 days of completion
  • 90 Days: File foreclosure lawsuit within 90 days of recording the lien

Mechanic's Lien Timeline

Step 1: Serve Preliminary Notice (Within 20 Days)

Subcontractors and suppliers must serve a 20-day preliminary notice. Direct contractors are generally exempt if they have a written contract.

Step 2: Complete Your Work

Finish providing labor or materials. Your 90-day lien deadline begins when you cease work.

Step 3: Send Payment Demand

Before filing a lien, send a formal demand letter giving the owner a chance to pay. This preserves the relationship and may resolve the dispute.

Step 4: Record Mechanic's Lien (Within 90 Days)

If unpaid, record your mechanic's lien with the county recorder where the property is located.

Step 5: Serve Copy of Lien

Serve a copy of the recorded lien on the property owner within 10 days of recording.

Step 6: File Foreclosure (Within 90 Days)

File a lawsuit to foreclose on the lien within 90 days of recording. Failure to file releases the lien.

California Mechanic's Lien Law

California's mechanic's lien laws are found in the Civil Code sections 8000-9566. These statutes are strictly construed, and failure to comply can result in loss of lien rights.

Key California Statutes

📚

Civil Code Section 8200 (Preliminary Notice)

Subcontractors and suppliers must serve a 20-day preliminary notice to preserve lien rights. The notice must include specific information about the work or materials being provided.

📚

Civil Code Section 8412 (Lien Recording Deadline)

A mechanic's lien must be recorded within 90 days after completion of the work of improvement. For subcontractors, this is measured from when they ceased providing labor or materials.

📚

Civil Code Section 8460 (Foreclosure Deadline)

A lien claimant must file a foreclosure action within 90 days after recording the lien. If no action is filed, the lien is automatically released.

📚

Civil Code Section 8424 (Lien Release Bond)

The property owner can post a lien release bond equal to 125% of the lien amount to remove the lien from the property. The claimant's rights then attach to the bond instead.

📚

Business & Professions Code Section 7031

Unlicensed contractors cannot enforce contracts or file mechanic's liens for work requiring a license. This is a complete bar to recovery in most cases.

Direct Contractor vs. Subcontractor Requirements

🛠 Direct Contractors

Generally exempt from 20-day preliminary notice if you have a written contract with the owner. Must still comply with 90-day lien and foreclosure deadlines.

🔧 Subcontractors

MUST serve 20-day preliminary notice to preserve lien rights. No preliminary notice = no lien rights, regardless of other compliance.

⚠ License Requirement

Under B&P Code 7031, a contractor who was unlicensed at any time during the project cannot file a mechanic's lien or recover payment. This applies even if you had a license when you started but it lapsed. Check your license status at cslb.ca.gov before filing.

Mechanic's Lien Checklist

Use this checklist to ensure you have everything needed to properly file your mechanic's lien.

📄 Contract Documents

  • Written contract or evidence of oral agreement
  • Change orders or contract amendments
  • Scope of work documentation
  • Property legal description and APN

📅 Timeline Documentation

  • Date you first furnished labor/materials
  • Proof of 20-day preliminary notice (if required)
  • Date you last furnished labor/materials
  • Date of completion of entire project

💰 Payment Records

  • All invoices sent
  • Payments received (dates and amounts)
  • Outstanding balance calculation
  • Demand letters sent

🔐 License Verification

  • Verify license was active during entire project
  • Print CSLB license verification
  • Confirm license classification covers the work
  • Workers' comp insurance verification

💡 Property Information Needed for Lien

Your mechanic's lien must include:

  • Property legal description (from title or county records)
  • Assessor's Parcel Number (APN)
  • Property street address
  • Owner's name and address
  • General statement of work performed
  • Amount of the lien claim

📝 Sample Demand Letter Language

Before filing a mechanic's lien, send a formal demand letter. This may resolve the dispute and preserves your professional relationship. Use these sample paragraphs.

Pre-Lien Demand Letter Opening
Dear [PROPERTY OWNER NAME]:

RE: Final Demand for Payment - [PROJECT ADDRESS]

I am writing regarding the unpaid balance of $[AMOUNT] for [description of work - e.g., "kitchen remodeling services"] I provided at your property located at [PROPERTY ADDRESS].

Despite completing the work as agreed and submitting invoices on [INVOICE DATES], payment has not been received. This letter serves as a final demand for payment before I exercise my mechanic's lien rights under California law.
Work and Payment Summary
The work I performed includes:

[Detailed description of work performed - e.g., "Complete demolition and reconstruction of kitchen including cabinet installation, countertop fabrication and installation, plumbing rough-in and finish, electrical upgrades, tile backsplash installation, and finish painting."]

Contract Amount: $[ORIGINAL AMOUNT]
Approved Change Orders: $[CHANGE ORDER AMOUNT]
Total Contract Value: $[TOTAL]
Payments Received: $[PAYMENTS]
Balance Due: $[BALANCE]

I completed work at this property on [COMPLETION DATE]. The balance has been outstanding for [NUMBER] days.
Lien Rights Warning
Under California Civil Code Section 8400 et seq., I have the right to record a mechanic's lien against your property for the unpaid balance. A mechanic's lien creates a cloud on your title that will:

1. Prevent you from selling the property until the lien is resolved
2. Prevent you from refinancing or obtaining new financing
3. Appear on title searches conducted by potential buyers or lenders
4. Subject your property to a foreclosure action if the lien is not satisfied

I strongly prefer to resolve this matter without filing a lien. Recording a lien and pursuing foreclosure will significantly increase the costs to both of us, including attorney's fees that I will seek to recover.
Payment Demand with Deadline
DEMAND FOR PAYMENT:

I demand payment of $[BALANCE DUE] within 10 days of the date of this letter.

Please make payment by [check/wire transfer/other] to:

[YOUR BUSINESS NAME]
[YOUR ADDRESS]

If I do not receive payment by [DEADLINE DATE], I will record a mechanic's lien against your property and proceed with all available legal remedies, including foreclosure.

If you have any questions about the work performed or the amounts owed, please contact me immediately at [YOUR PHONE/EMAIL] so we can resolve this matter before I am forced to take legal action.
Intent to Record Lien Notice
NOTICE: Pursuant to California Civil Code Section 8200 et seq., please be advised that I intend to record a mechanic's lien against the property located at:

[PROPERTY ADDRESS]
APN: [ASSESSOR'S PARCEL NUMBER]

This notice is provided as a courtesy. Under California law, I have 90 days from the completion of my work to record a mechanic's lien. My deadline to file is [90 DAYS FROM COMPLETION DATE].

Once recorded, the lien will remain on your property until paid in full or released by court order. You will also be responsible for my attorney's fees and costs incurred in enforcing the lien.

This dispute can still be resolved through immediate payment.

Frequently Asked Questions

What is the deadline to file a mechanic's lien in California?

In California, you must file your mechanic's lien within 90 days after completion of the work of improvement. For direct contractors, this is 90 days from completion of the entire project. For subcontractors and suppliers, it's 90 days from the date they ceased providing work or materials. Missing this deadline permanently waives your lien rights.

Do I need a 20-day preliminary notice to file a mechanic's lien?

Yes, if you are a subcontractor, material supplier, or equipment lessor. California Civil Code 8200 requires you to serve a 20-day preliminary notice within 20 days of first furnishing labor or materials. Direct contractors who have a written contract with the property owner are generally exempt. Without a valid preliminary notice, you cannot file a mechanic's lien.

How do I release or remove a mechanic's lien?

A mechanic's lien can be released by: (1) payment in full and recording a lien release, (2) the property owner posting a lien release bond under Civil Code 8424, which removes the lien from the property but preserves the claim against the bond, or (3) failure to file a foreclosure action within 90 days of recording the lien. Owners can also petition the court to remove an invalid lien.

Can I file a mechanic's lien without a contractor's license?

Generally no. Under California Business & Professions Code 7031, an unlicensed contractor cannot enforce any contract for work requiring a license, including filing a mechanic's lien. However, there are narrow exceptions for suppliers of materials who are not performing labor, and for work that does not require a license (under $500 including labor and materials).

🚀 Get Legal Help

Mechanic's liens have strict technical requirements. A defective lien can be challenged and removed by the property owner. Here's when professional help makes sense.

Consider Hiring an Attorney If:

  • The amount at stake is substantial ($25,000+)
  • The property owner is disputing the quality of your work
  • There are multiple parties involved (owner, GC, lender)
  • You need to file a foreclosure action
  • Your deadline is approaching and you need to act fast
  • The owner has posted a lien release bond

My Fee Structure

💰 Contingency Fee

33-40% of recovery. No fee unless I collect. Available for claims over $50,000 with strong documentation.

📅 Hourly Rate

$240/hour for lien preparation, filing, and foreclosure litigation.

📄 Flat Fee

Starting at $450 for demand letter and lien document preparation.

Unpaid for Your Work?

I help California contractors enforce their payment rights through properly prepared and filed mechanic's liens. Don't let your deadline pass.

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