Master California mechanics lien law: give preliminary notice, meet the 90-day filing deadline for contractors and subcontractors, record properly, and release liens correctly. Your paycheck depends on it.
Key Takeaways
Why This Matters on the Exam
Here's the reality: mechanics liens protect your paycheck. I've seen contractors lose tens of thousands because they didn't file a lien on time. The C-36 exam heavily tests California's mechanics lien law—it's strict and specific. You must understand preliminary notice, filing deadlines, and the differences between contractor and subcontractor rights. This is legal protection, not just paperwork. Get it right or get burned.
What You Must Know
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Preliminary notice (20-day notice) required before filing mechanics lien under California Civil Code 8200-8210; applies to contractors, subcontractors, suppliers
Direct contractor lien filing deadline: 90 days from last date of furnishing labor, services, materials, or equipment
Subcontractor lien filing deadline: 90 days after notice of completion is recorded; if no notice recorded, 90 days from last work date
Notice of completion, when recorded by owner or contractor, triggers 90-day countdown for subcontractors; if not recorded, subcontractors have 90 days from last work date like direct contractors
Mechanics lien must include: claimant name/address, property description, last work date, amount claimed, owner name; must be verified and recorded in county recorder
Stop payment notice (Civil Code 8600-8610) stops construction loan disbursements without filing lien; alternative remedy to mechanics lien
Bonded stop notice requires posting bond equal to 1.5 times amount claimed; stops further loan disbursements
Conditional lien release: released upon payment; Unconditional lien release: released when payment cashed; must be in writing
Subcontractors must give preliminary notice to property owner and lender or mechanics lien filing rights may be compromised or eliminated
Mechanics lien law applies identically to residential and commercial construction; same deadlines and procedures for both
California Mechanics Lien Law is codified in California Civil Code sections 8000-8800
Preliminary notice (20-day notice) is required before filing a lien in most cases
Filing deadlines vary: 90 days for direct contractors, 90 days for subcontractors after notice of completion
A mechanics lien creates a security interest in the property to enforce payment
Bonded stop notices provide alternative remedy to mechanics liens
Lien release procedures are strictly regulated
Different rules apply for direct contractors vs. subcontractors and suppliers