California Construction Liens FAQ

A mechanics lien in California is a legal claim against real property that secures payment for labor, materials, equipment, or services provided to improve the property. Governed by California Civil Code sections 8000-9566, mechanics liens give construction professionals a powerful collection tool when property owners or general contractors fail to pay. The lien attaches to the property itself, not just the owner personally, making it a secured debt that must typically be satisfied before the property can be sold or refinanced. Any person who provides work or materials for a work of improvement, including contractors, subcontractors, material suppliers, equipment lessors, and laborers, may claim a mechanics lien. The lien right is constitutional in California, enshrined in Article XIV, Section 3 of the California Constitution, which declares that mechanics, materialmen, artisans, and laborers shall have a lien upon the property they have worked on.

A preliminary notice (also called a 20-day notice) is a written notice that most construction professionals must serve to preserve their mechanics lien rights under California Civil Code section 8200. Subcontractors, material suppliers, and equipment lessors must serve this notice within 20 days of first furnishing labor or materials to the project. The notice must be sent to the property owner, direct contractor (general contractor), and construction lender if one exists. The preliminary notice protects lien rights only for work performed within 20 days before the notice was served and all work performed afterward. General contractors who contract directly with the owner are exempt from the preliminary notice requirement. The notice must contain specific information including a description of materials or services being provided, the name and address of the person furnishing them, and the name of the person who contracted for the work. Failure to serve a proper preliminary notice can result in complete loss of mechanics lien rights.

California Civil Code section 8412 establishes strict deadlines for recording mechanics liens that vary based on project completion status. If a notice of completion is recorded, direct contractors have 60 days to record their lien claim, while all other claimants (subcontractors, suppliers, laborers) have only 30 days. If a notice of cessation is recorded, the same timeframes apply from the recording date. If no notice of completion or cessation is recorded, all claimants have 90 days from the actual completion of the work of improvement to record their lien. These deadlines are strictly enforced and cannot be extended. The lien must be recorded in the county recorder's office where the property is located and must contain all information required by Civil Code section 8416, including a description of the work provided, the amount claimed, the property description, and the names of relevant parties. Missing these deadlines permanently extinguishes lien rights.

To enforce a mechanics lien in California, you must file a lawsuit to foreclose the lien within 90 days after recording the lien claim, as required by Civil Code section 8460. This is a firm deadline that cannot be extended. Within 20 days of filing the enforcement action, you must also record a notice of pendency of action (lis pendens) with the county recorder to provide public notice of the lawsuit. The foreclosure lawsuit proceeds like other civil cases, but if successful results in a court-ordered sale of the property to satisfy the lien claim. You can also record a notice of credit if you receive partial payment, reducing your lien amount. If you fail to file the enforcement action within 90 days, or fail to record the lis pendens within 20 days of filing, the lien becomes unenforceable and is considered released by operation of law. Property owners can also demand that lien claimants file suit within the 90-day period, and if the claimant fails to do so, the lien is released.

Yes, California law provides property owners with the right to withhold funds sufficient to satisfy potential lien claims when they receive preliminary notices. Under Civil Code section 8132, an owner may withhold from the direct contractor sufficient funds to pay claims for which preliminary notices have been received. This creates a practical protection mechanism where owners can ensure funds are available to pay subcontractors and suppliers directly if the general contractor fails to do so. Property owners should maintain records of all preliminary notices received and track the amounts claimed. When making progress payments to the general contractor, owners can require conditional and unconditional lien waivers from subcontractors and suppliers as proof of payment. California Civil Code sections 8132-8138 provide standardized waiver forms that must be used. Owners who pay the general contractor in full despite receiving preliminary notices may face double payment liability if the general contractor fails to pay downstream parties who then enforce their lien rights.

California Civil Code sections 8132-8138 establish four statutory lien waiver forms that are the only valid waivers for private construction projects. These are: Conditional Waiver and Release on Progress Payment (used when requesting progress payment before receiving it), Unconditional Waiver and Release on Progress Payment (used after progress payment is received), Conditional Waiver and Release on Final Payment (used when requesting final payment), and Unconditional Waiver and Release on Final Payment (used after final payment is received). Any waiver that does not substantially follow these statutory forms is unenforceable. Conditional waivers become effective only upon payment of the amount stated, protecting claimants from releasing rights before actually receiving payment. Unconditional waivers are effective immediately upon signing, regardless of whether payment clears. Property owners and general contractors should require waivers at each payment stage to document the release of lien rights. Blanket waivers signed at the beginning of a project or waivers of future lien rights are void and unenforceable under California law.

A stop payment notice is a powerful collection remedy under California Civil Code sections 8500-8560 that allows unpaid subcontractors and suppliers to require the property owner or construction lender to withhold funds from the general contractor. Unlike a mechanics lien which attaches to the property, a stop payment notice attaches to construction funds. There are two types: a stop payment notice to the owner, which requires the owner to withhold sufficient funds to satisfy the claim, and a bonded stop payment notice to the construction lender, which requires the lender to withhold funds from the construction loan. To enforce a stop payment notice against a construction lender, the claimant must provide a bond equal to 125% of the claim amount. The stop payment notice must be served within the same timeframes as mechanics liens would need to be recorded. This remedy is particularly useful when there are sufficient funds remaining in the construction budget but the general contractor is not paying subcontractors or suppliers.

No, mechanics liens cannot be filed against public property in California because government-owned property cannot be sold to satisfy private debts. However, California provides alternative remedies for unpaid parties on public works projects through payment bond claims. Under California Civil Code sections 9550-9566, any person who provides labor, services, equipment, or materials on a public works project may make a claim against the payment bond required on public construction contracts over $25,000. The payment bond is furnished by the prime contractor and guarantees payment to subcontractors, suppliers, and laborers. Claimants must serve a preliminary notice within 20 days of first providing work to preserve their bond claim rights, just as with private projects. The bond claim must be made within 15 days after recordation of a notice of completion, or within 75 days after completion if no notice is recorded. Claims are made by serving the prime contractor and the surety company that issued the bond. The surety must pay valid claims or face liability for the claim amount plus attorney fees.

California Civil Code section 8422 provides that a claim of lien is not invalid by reason of any defect, error, or omission unless the property owner demonstrates actual prejudice from the error. This is a substantial compliance standard that protects lien claimants from losing rights due to minor technical mistakes. However, certain information is essential and errors can be fatal. The property description must be sufficient to identify the property, the amount claimed must not be willfully exaggerated (Civil Code section 8424 makes a willfully excessive lien amount grounds for invalidity), and the lien must be verified under penalty of perjury. Courts have held that significantly misdescribing the property, claiming amounts far exceeding what is owed, or failing to properly verify the lien can invalidate the claim. If you discover an error in a recorded lien, you can record an amended lien claim within the original recording deadline. Property owners challenging a lien based on errors bear the burden of proving they were actually prejudiced by the mistake.

Property owners have several options to remove a mechanics lien in California. First, payment of the claim results in the lien claimant recording a release of lien. Second, if the lien claimant fails to file a foreclosure lawsuit within 90 days of recording the lien, the owner can record a notice under Civil Code section 8482 stating the credit has been released by operation of law. Third, the owner can file a petition to release a lien under Civil Code section 8480 if the claim is invalid, excessive, or procedurally defective, allowing a court to order its release within 20 days. Fourth, the owner can obtain a lien release bond under Civil Code section 8424, which substitutes a surety bond for the property as security, effectively removing the lien from the property while preserving the claimant's right to pursue the bond. The bond must be in an amount equal to 125% of the lien claim. This is particularly useful when an owner needs to sell or refinance the property but disputes the validity of the lien claim.