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Mechanics Lien Filing Procedure (California)

Document Type: Procedure
Version: 1.0
Last Updated: February 2026
Distribute To: AR Team, Project Managers, Legal, Executives

Purpose​

Establish the process for filing a mechanics lien when payment is not received, to protect the company's legal right to recover payment for work performed.

⚠️ CRITICAL DEADLINES​

ActionCalifornia DeadlineConsequence of Missing
Preliminary Notice20 days from first workLien limited to 20 days before notice
Mechanics Lien90 days from completionLOSE ALL LIEN RIGHTS
Lawsuit to Enforce90 days from lien recordingLien becomes unenforceable

These deadlines are ABSOLUTE. There are NO extensions.

When to Consider Filing a Lien​

Lien Filing Triggers​

  • Payment 60+ days past due
  • Owner/GC non-responsive to collection efforts
  • Demand letters ignored
  • No reasonable payment plan offered
  • Project nearing completion (deadline approaching)
  • Significant amount at stake ($10,000+)

Before Filing - Verify:​

  • Preliminary notice was sent timely
  • Work was actually performed
  • Payment is legitimately owed
  • No valid dispute on the work
  • All billing documentation complete
  • Deadline calculation is correct

Calculating the 90-Day Deadline​

What is "Completion"?​

For Direct Contractors (GC to Owner):

  • Completion of the entire project
  • Recording of Notice of Completion (if recorded)
  • Cessation of labor for continuous period

For Subcontractors/Suppliers:

  • Completion of YOUR work (not entire project)
  • Last day you furnished labor or materials
  • Does NOT include warranty or punch list work

If Notice of Completion is Recorded​

Claimant TypeDeadline
Direct Contractor60 days from recording
Subcontractor30 days from recording
Material Supplier30 days from recording

If NO Notice of Completion​

All claimants: 90 days from actual completion

Step-by-Step Lien Filing Process​

Step 1: Decision to File (Day 1)​

Internal Review Meeting:

  • AR Manager
  • Project Manager
  • Executive (for amounts over $50,000)
  • Legal counsel (recommended)

Review:

  • Amount owed and documentation
  • Preliminary notice proof
  • Deadline calculation
  • Relationship considerations
  • Collection efforts to date

Decision: Approve or reject lien filing

Step 2: Prepare Mechanics Lien Document​

Required Content (California Civil Code § 8416):

  1. Claimant Information

    • Name and address
    • Type of claimant (contractor, sub, supplier)

  2. Property Description

    • Street address
    • Legal description (from title report or assessor)

  3. Owner Information

    • Name of owner (or reputed owner)
    • Address

  4. Direct Contractor Information (if you're a sub)

    • Name and address of GC

  5. Work Description

    • General statement of work furnished
    • Labor, services, equipment, or materials

  6. Amount of Claim

    • Total amount claimed (can include interest if contractual)

  7. Verification

    • Signed under penalty of perjury
    • Must be signed by claimant or authorized agent

Step 3: Record the Lien​

Where to Record: County Recorder's Office in the county where the property is located

How to Record:

  1. Bring original lien document
  2. Pay recording fee ($15-50 typically)
  3. Obtain certified copy with recording information

Recording Information Captured:

  • Document number
  • Recording date and time
  • Book and page (if applicable)

Step 4: Serve Copy of Recorded Lien​

Must Serve Within 15 Days of Recording:

RecipientRequired
Property OwnerYes
Direct Contractor (if sub/supplier)Yes
Construction Lender (if any)Recommended

Service Methods:

  • Personal delivery
  • Certified mail, return receipt
  • Registered mail

Proof of Service: Complete and retain proof of service affidavit

Step 5: Enforce the Lien (File Lawsuit)​

CRITICAL: You must file a lawsuit to foreclose the lien within 90 days of recording.

If No Lawsuit Filed:

  • Lien becomes unenforceable
  • You lose foreclosure rights
  • Lien can be expunged from title

Lawsuit Considerations:

  • Hire construction attorney
  • Court filing fees ($400-500+)
  • Time and legal costs
  • Potential for settlement before trial

Mechanics Lien Form (California)​

RECORDING REQUESTED BY:
[Your Company Name]

WHEN RECORDED MAIL TO:
[Your Company Name]
[Your Address]
[City, State ZIP]

SPACE ABOVE THIS LINE FOR RECORDER'S USE
================================================================

                    MECHANICS LIEN
        (California Civil Code Section 8400 et seq.)

NOTICE IS HEREBY GIVEN that:

1. The undersigned claimant claims a mechanics lien upon the 
   real property hereinafter described.

2. CLAIMANT INFORMATION:
   Name: [Your Company Name]
   Address: [Your Street Address]
   [City, State ZIP]
   
3. The claimant is: [check one]
   ☐ A direct contractor
   ☐ A subcontractor
   ☐ A material supplier
   ☐ An equipment lessor
   ☐ A laborer

4. NAME OF OWNER OR REPUTED OWNER:
   [Property Owner Name]

5. PROPERTY DESCRIPTION:
   Street Address: [Property Address]
   Legal Description: [Legal description from title report]
   
   APN: [Assessor's Parcel Number]

6. NAME OF DIRECT CONTRACTOR:
   [General Contractor Name] (if claimant is sub/supplier)
   [N/A if claimant is direct contractor]

7. GENERAL STATEMENT OF WORK:
   The claimant furnished the following labor, services, 
   equipment, or materials for the work of improvement:
   
   [Description of work - e.g., "Electrical installation 
   including rough-in, finish electrical, and fixtures for 
   new commercial building construction"]

8. AMOUNT OF LIEN CLAIM:
   The amount of the demand, after deducting all just credits 
   and offsets, is: $[Amount]

9. The claimant claims a lien on the above-described property 
   and improvements thereon, and on so much land as may be 
   required for the convenient use thereof.

VERIFICATION

I, the undersigned, say: I am the [title] of the claimant 
herein; I have read the foregoing Mechanics Lien and know the 
contents thereof, and I certify that the same is true of my 
own knowledge.

I declare under penalty of perjury under the laws of the State 
of California that the foregoing is true and correct.

Executed on [Date] at [City], California.

_________________________________
[Printed Name]
[Title]
[Company Name]

================================================================

After Lien is Recorded​

Immediate Actions​

  1. Calendar 90-day lawsuit deadline
  2. Send copies to owner and GC
  3. Notify your attorney
  4. Continue collection efforts
  5. Document all communication

Potential Outcomes​

1. Payment in Full

  • Receive payment
  • Execute lien release
  • Record release with county

2. Settlement/Partial Payment

  • Negotiate resolution
  • Execute partial release if appropriate
  • Document agreement

3. Lien Bond

  • Owner may post bond to remove lien from property
  • Lien transfers to bond
  • You still have claim against bond

4. Foreclosure Lawsuit

  • File within 90 days
  • Prosecute claim through court
  • Potential sale of property to satisfy lien

Lien Release​

When Payment Received:

You MUST provide a lien release when paid. Use the statutory forms:

  • Unconditional Waiver and Release (after payment clears)

Recording the Release:

  • Prepare release document
  • Record with county recorder
  • Provide copy to owner

Lien Filing Checklist​

Before Filing​

  • Amount owed verified
  • Preliminary notice on file with proof
  • Deadline calculated correctly
  • Owner/property information verified
  • Legal description obtained
  • Management approval obtained
  • Attorney consulted (recommended)

Filing​

  • Lien document prepared
  • Signed under penalty of perjury
  • Recorded with county recorder
  • Certified copy obtained
  • Recording fee paid

After Filing​

  • Copy served on owner (within 15 days)
  • Copy served on GC (within 15 days)
  • Proof of service retained
  • 90-day lawsuit deadline calendared
  • Attorney engaged for enforcement
  • Continue collection efforts

Common Lien Mistakes​

❌ Avoid These:

  • Missing 90-day deadline
  • Wrong property legal description
  • Filing without valid preliminary notice
  • Wrong claimant type identified
  • Math errors in amount
  • Failing to serve copies
  • Failing to file lawsuit within 90 days

✅ Best Practices:

  • File early (don't wait until day 89)
  • Double-check legal description
  • Have attorney review before recording
  • Keep meticulous records
  • Calendar ALL deadlines
  • Preliminary Notice Procedure
  • Lien Waiver Management
  • Collections Procedure
  • California Mechanics Lien Form
  • Lien Release Form

California Civil Code Sections:

  • § 8400-8494 (Mechanics Lien provisions)
  • § 8416 (Lien content requirements)
  • § 8460 (Time for recording)
  • § 8412 (Amount of lien)

This document provides general information. Consult with legal counsel before filing any lien.

Template provided by support.construction. Verify current law with legal counsel.