If you have supplied labor or materials to a construction
project in California, and have not been paid, the state law may be on your
side. You could be entitled to file a California mechanics lien, which is a
legal hold on the property that was being constructed. It is enforced through a
foreclosure sale, that is, court proceedings that are similar to a mortgage
foreclosure.
There are a number of reasons why filing a lien may be in
your interest. It can prevent the property from being sold before you are paid,
and can enable you to recover legal costs and attorney's fees. It also means
you are able to sue the property owner for payment, even if your contract was
not with the owner -- for instance, if it was the tenant who hired you and then
refused to pay.
Before filing, you have to check that the material or labor
you provided is covered by the lien. It will only qualify if used directly for
the permanent improvement of the property. For instance, a temporary security
fence erected round the site, and then removed, would not qualify, even if it
was part of the contract. The contract must be in writing, and the work must be
completed.
If you qualify, you must serve a 20-day preliminary notice,
and then complete a California State lien form. You have to serve the form on
the owner, and file the lien at the same time. You then have 90 days to
foreclose by filing a lawsuit.
A California mechanics lien is the most effective way for
you to recover unpaid debts. However, remember that a single mistake can render
your lien invalid. It is highly advisable to hire an attorney to make sure you
get it right.
For more information on a California mechanics lien, read more here!
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