Law & Business · Module 1

Mechanics Lien Fundamentals

Lesson 5 of 7~20 minFree previewCurrent as of September 2026Leer en español

A step by step guide to California's mechanics lien law for private jobs (Civil Code 8000 and following). You will learn who has lien rights, what a preliminary notice must say and to whom it goes, when a work of improvement is legally complete, how a notice of completion shortens your deadline, what a claim of lien must contain and how it must be served, the 90 day foreclosure deadline, lien priority, and how liens are released.

Key Takeaways

Direct contractors, subcontractors, material suppliers, equipment lessors, laborers and design professionals who provide authorized work have lien rights (Civil Code 8400, 8404).
Preliminary notice goes to the owner, the direct contractor and the construction lender, not later than 20 days after you first furnish work; a direct contractor gives it only to the lender, and a laborer gives none (Civil Code 8200, 8204).
A late preliminary notice still works, but only for work furnished within 20 days before it and after (Civil Code 8204).
Completion means actual completion, owner occupancy or use with cessation of labor, 60 days of continuous cessation, or a recorded notice of cessation after 30 days of cessation (Civil Code 8180).
With no recorded notice, everyone records within 90 days after completion. After a notice of completion or cessation is recorded, a direct contractor has 60 days and everyone else has 30 days (Civil Code 8412, 8414).
A notice of completion must be recorded within 15 days after completion, and the owner must send copies within 10 days or it does not shorten the deadline for those people, except for an owner-occupant of a dwelling of four or fewer units (Civil Code 8182, 8190).
The claim of lien must be verified, contain the statutory items, and be served on the owner with the Notice of Mechanics Lien; failing to serve it makes the lien unenforceable (Civil Code 8416).
Sue to foreclose within 90 days after recording, or the lien expires (Civil Code 8460).
Lien priority dates from the start of the work of improvement, not from the recording date of each lien (Civil Code 8450).

Why This Matters

A mechanics lien lets someone who improved a property, and was not paid, make a claim against the property itself. The Civil Code (sections 8000 and following) sets the rules, and CSLB's Law and Business study guide lists "Liens and other remedies" among the exam's sections. The rules are strict: a missed day or a missing step can make a lien unenforceable. This lesson walks through them in the order you would use them on a job. It covers private works; public works have their own set of rules starting at Civil Code 9000 (Civil Code 8034).

Who Has Lien Rights

Civil Code 8400 gives a lien right to a person who provides work authorized for a work of improvement, including:

Direct contractors (those who contract directly with the owner).
Subcontractors.
Material suppliers.
Equipment lessors.
Laborers (people who work as employees on the project, Civil Code 8024).
Design professionals.

Work is authorized if it is provided at the request of or agreed to by the owner, or provided or authorized by a direct contractor, subcontractor, architect, project manager or other person in charge of the work (Civil Code 8404).

The lien is for the lesser of the reasonable value of your work or the price agreed with the person who hired you (Civil Code 8430).

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