Mechanic's liens basically refer to statutes or common law. It is a charge on a land in nature of a mortgage. However, it differs from a mortgage, where it is not created by contract, but imposed by law, regardless of the landowner's wish. A contractor will need to have a mechanic's lien for his services, especially if he/she contracts with a town to operate waterworks or a right of way for water pipes. The private property will also be subject to mechanic's liens as it will be land being acquired for reservoir or water works. This article reviews how you should understand the mechanic's liens as seen in https://www.bicanet.com/mechanics-lien-california/.
Why use Mechanic's liens
Mechanics lien in the State of California are very important, especially if you are a contractor and fail to get paid on homeowner property. In California, you can only reinforce a lien law within 90 days from when the work is completed. According to their law, the contractor first needs to fill up a preliminary notice, which serves in preserving the lien. The claim can only extend for 20 days before the notice is served. If the preliminary notice is not provided, then the contractor is highly prone to lose his/her lien rights.
If you would want to file a mechanics lien in the state of California, then there are a number of statutes that you would need to abide on. These are as follows:
– Preliminary notice: This is strictly required to secure a lien, and can therefore be acceptable even if provided late. Failure to provide it may cause the contractor or claimant lack the ability to file the lien. It must be provided within 20 days of starting work or delivery of material to ensure protection.
– Time deadline when the lien needs to be filed: Every state will have a deadline when the mechanic lien will need to be filled. In California specifically, the deadline will be calculated from when the work was last done, or from when the notice of completion is filed. This hence gives a longer time in which a valid lien can be filled. Essentially, the average time provided to file the mechanics lien is usually about 90 days from when the work is completed. As a contractor or subcontractor, you also need to ensure all the due payments are cleared.
Mechanic's liens would be troublesome to general contractors, as well as claimants once filed. If a mechanic's lien is filed against a piece of land, other parties entitled to the liens would also file their claim. The mechanic's lien is filed against certain properties will eventually be paid, since they are kept in force by a legal action commenced in required time.
Getting a mechanics liens against a property would be a wise decision only if the particular contractor(s) are concerned about securing payment owed to them. This is because the mechanic's liens end up becoming troublesome to the property owners. Since the liens have a priority against any money that comes in from advancing of the land or even when one decides to sell the land. Landowners or contractors can, however, try and avoid the mechanic's liens by ensuring payments are made to the sub-contractors on time, or even getting a waiver on the payments to be made. A contractor may also make direct payments to the subcontractors or suppliers, such that they avoid the filing of the liens.