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MECHANICS LIEN CLAIM (CLAIM OF LIEN)

(California — Cal. Civ. Code § 8416)


PART ONE: OVERVIEW OF CALIFORNIA MECHANICS LIEN LAW

A. Constitutional and Statutory Basis

The California mechanics lien is a constitutional right established by Article XIV, Section 3 of the California Constitution, which provides that mechanics, persons furnishing materials, artisans, and laborers of every class shall have a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor done and material furnished. This right is further codified and regulated by the California Civil Code, Part 6 (Works of Improvement), Sections 8000 through 9566.

[// GUIDANCE: California's mechanics lien law was comprehensively reorganized by Senate Bill 189 (Stats. 2010, Ch. 697), operative July 1, 2012. Practitioners should cite to the current code sections under Part 6 of Division 4.]

B. Who May Claim a Mechanics Lien

Under Cal. Civ. Code § 8400, the following persons who contribute to a work of improvement have lien rights:

  • Direct Contractors (Cal. Civ. Code § 8018) — A contractor who has a direct contractual relationship with the owner
  • Subcontractors — Persons who contract with a direct contractor or another subcontractor to provide labor, services, or materials
  • Material Suppliers (Cal. Civ. Code § 8034) — Persons who furnish materials to be used or consumed in the work of improvement
  • Laborers and Workers — Persons who perform labor for wages upon the work of improvement
  • Equipment Lessors — Persons who lease equipment for use in the work of improvement
  • Design Professionals (Cal. Civ. Code § 8014) — Licensed architects, registered professional engineers, and licensed land surveyors (subject to separate provisions under §§ 8300-8318)
  • Persons Furnishing Appliances or Teams — Including those furnishing power, fixtures, or apparatus

[// GUIDANCE: The "claimant" is defined in Cal. Civ. Code § 8010 as a person who has a right to record a claim of mechanics lien, give a stop payment notice, or assert a claim against a payment bond. The term encompasses direct contractors, subcontractors, material suppliers, laborers, and equipment lessors.]

C. Work of Improvement Defined

Under Cal. Civ. Code § 8050, "work of improvement" includes:

  • Construction, alteration, repair, demolition, or removal of a building, wharf, bridge, ditch, flume, aqueduct, well, tunnel, fence, machinery, railroad, or road
  • Seeding, sodding, or planting of real property for landscaping purposes
  • Filling, leveling, or grading of real property
  • Site improvement (§ 8050(b))
  • The entire structure or scheme of improvement as a whole

[// GUIDANCE: "Work of improvement" is construed broadly and encompasses the entire project, not just an individual claimant's portion. A site improvement also qualifies under Cal. Civ. Code § 8402.]


PART TWO: PRELIMINARY NOTICE REQUIREMENTS

A. Obligation to Serve Preliminary Notice (20-Day Notice)

Under Cal. Civ. Code § 8200, a claimant must serve a preliminary 20-day notice as a condition precedent to enforcing lien rights, stop payment notice rights, or payment bond claims.

Who Must Give Preliminary Notice:

  • ☐ Subcontractors
  • ☐ Material suppliers
  • ☐ Equipment lessors
  • ☐ Any claimant without a direct contract with the owner

Who Is Exempt from Preliminary Notice:

  • ☐ Direct contractors (persons with a direct contractual relationship with the owner)
  • ☐ Laborers performing actual labor for wages (Cal. Civ. Code § 8200(e))

B. Preliminary Notice Content Requirements (Cal. Civ. Code § 8202)

The preliminary notice must contain the following:

  1. A general description of the labor, service, equipment, or materials furnished or to be furnished
  2. An estimate of the total price of the labor, service, equipment, or materials furnished or to be furnished
  3. The name and address of the person furnishing the labor, service, equipment, or materials
  4. The name of the person who contracted for the labor, service, equipment, or materials
  5. A description of the jobsite sufficient for identification
  6. The required statutory notice language prescribed by § 8202(c)

C. Preliminary Notice Timing (Cal. Civ. Code § 8204)

  • The preliminary notice must be served not later than 20 days after the claimant has first furnished labor, services, equipment, or materials to the work of improvement
  • A claimant who fails to serve the notice within 20 days is not precluded from serving a later notice but will have lien rights only for work performed within 20 days prior to the service of the preliminary notice and at any time thereafter
  • The preliminary notice is effective for work performed up to 20 days prior to service plus all subsequent work

D. Preliminary Notice Service (Cal. Civ. Code § 8206)

The preliminary notice must be served on:

  • ☐ The owner or reputed owner
  • ☐ The direct contractor or reputed direct contractor
  • ☐ The construction lender or reputed construction lender (if any)

Service may be by:

  • ☐ Personal delivery
  • ☐ Registered mail or certified mail, postage prepaid, with return receipt requested
  • ☐ Pursuant to Cal. Civ. Code § 8116 (methods of delivery)

[// GUIDANCE: Keep proof of service for all preliminary notices. Failure to serve a proper preliminary notice eliminates the claimant's lien rights, stop payment notice rights, and payment bond rights for work performed more than 20 days before service. This is the single most common reason for loss of lien rights.]


PART THREE: RECORDING DEADLINES AND REQUIREMENTS

A. Recording Deadline — No Notice of Completion or Cessation Recorded

If no Notice of Completion or Notice of Cessation has been recorded:

  • All claimants (direct contractors, subcontractors, material suppliers, etc.) must record their claim of mechanics lien within 90 days after completion of the work of improvement (Cal. Civ. Code §§ 8412, 8414)

B. Recording Deadline — Notice of Completion Recorded (Cal. Civ. Code § 8182)

If a Notice of Completion has been recorded:

  • Direct contractors must record within 60 days after the notice of completion is recorded
  • All other claimants (subcontractors, material suppliers, etc.) must record within 30 days after the notice of completion is recorded

C. Recording Deadline — Notice of Cessation Recorded (Cal. Civ. Code § 8172)

If a Notice of Cessation has been recorded:

  • Direct contractors must record within 60 days after the notice of cessation is recorded
  • All other claimants (subcontractors, material suppliers, etc.) must record within 30 days after the notice of cessation is recorded

D. Notice of Completion (Cal. Civ. Code §§ 8180-8190)

A Notice of Completion is recorded by the property owner (or owner's agent) after the work of improvement has been completed. Key provisions:

  • Must be recorded within 15 days after completion of the work of improvement (Cal. Civ. Code § 8182)
  • Completion is defined under Cal. Civ. Code § 8180 as: (a) actual completion of the work of improvement; (b) occupation or use of the work of improvement by the owner or agent, together with cessation of labor; or (c) cessation of labor for a continuous period of 60 days
  • The notice of completion must contain the information required by Cal. Civ. Code § 8184

E. Notice of Cessation (Cal. Civ. Code §§ 8170-8172)

A Notice of Cessation may be recorded when there has been a continuous cessation of labor on the work of improvement for at least 30 continuous days:

  • Must be recorded within 15 days after cessation of labor (Cal. Civ. Code § 8170)
  • Has the same effect on deadlines as a notice of completion

[// GUIDANCE: Always verify whether a Notice of Completion or Notice of Cessation has been recorded before calculating the recording deadline. The shortened deadlines are strictly enforced.]

F. Additional Recording Requirements

  • The claim of lien must be recorded in the office of the county recorder for the county in which the work of improvement or any part thereof is situated (Cal. Civ. Code § 8416)
  • A direct contractor may not record a lien until the work of improvement is actually complete or a cessation event has occurred (Cal. Civ. Code § 8412)
  • A claimant other than a direct contractor may not record a lien until after the claimant has ceased to provide work on the project (Cal. Civ. Code § 8414)

PART FOUR: CLAIM OF MECHANICS LIEN FORM

[// GUIDANCE: The form below meets the content requirements of Cal. Civ. Code § 8416. The statutory Notice of Mechanics Lien language must appear in at least 10-point boldface type. Verify all information before recording.]


RECORDING REQUESTED BY:

[________________________________]

WHEN RECORDED MAIL TO:

Name: [________________________________]

Address: [________________________________]

City/State/ZIP: [________________________________]

SPACE ABOVE THIS LINE FOR RECORDER'S USE


CLAIM OF MECHANICS LIEN

(Pursuant to Cal. Civ. Code § 8416)

1. Claimant Information:

Field Entry
Claimant Name [________________________________]
Claimant Entity Type ☐ Individual ☐ Corporation ☐ LLC ☐ Partnership ☐ Sole Proprietorship ☐ Other: [____]
Claimant Address [________________________________]
City, State, ZIP [________________________________]
Telephone [________________________________]
Contractor License No. [________________________________] (if applicable)

2. Owner / Reputed Owner Information:

Field Entry
Owner or Reputed Owner Name [________________________________]
Owner Address [________________________________]
City, State, ZIP [________________________________]

3. Direct Contractor Information (if claimant is not the direct contractor):

Field Entry
Direct Contractor Name [________________________________]
Direct Contractor Address [________________________________]
City, State, ZIP [________________________________]
Contractor License No. [________________________________]

4. Person by Whom Claimant Was Employed or to Whom Claimant Furnished Work:

Field Entry
Name [________________________________]
Relationship to Project ☐ Owner ☐ Direct Contractor ☐ Subcontractor ☐ Other: [____]

5. Project and Property Information:

Field Entry
Project Name [________________________________]
Property Street Address [________________________________]
City [________________________________]
County [________________________________], California
Assessor's Parcel Number(s) [________________________________]

6. Legal Description of Property:

The real property subject to this claim of lien is described as follows:

[________________________________]
[________________________________]
[________________________________]

(See Exhibit "A" attached hereto and incorporated herein by reference, if applicable.)

[// GUIDANCE: The legal description must be sufficient for identification under Cal. Civ. Code § 8416(a)(5). Use the full metes and bounds or lot/tract description from the deed. The street address alone is insufficient for recording purposes. Attach Exhibit A for lengthy legal descriptions.]

7. General Description of Work Furnished:

Claimant furnished the following labor, services, equipment, and/or materials for the improvement of the above-described property:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

8. Dates of Work:

Field Entry
Date claimant first furnished labor/materials [__/__/____]
Date claimant last furnished labor/materials [__/__/____]

9. Claim Amount:

Field Entry
Total value of labor, services, equipment, and/or materials furnished $ [________________________________]
Less credits and offsets $ [________________________________]
Net amount of lien claim (demand after deducting all just credits and offsets) $ [________________________________]

[// GUIDANCE: Under Cal. Civ. Code § 8404, the lien amount is limited to the lesser of: (a) the reasonable value of the work provided by the claimant, or (b) the price agreed to between the claimant and the person who contracted for the work. Include only amounts actually due and unpaid after all just credits and offsets. Filing a fraudulent lien or one willfully including an amount greater than is due may subject the claimant to forfeiture (§ 8422) and liability (§ 8424).]


STATUTORY NOTICE OF MECHANICS LIEN

(Required by Cal. Civ. Code § 8416(a)(8) — Must Appear in at Least 10-Point Boldface Type)

NOTICE OF MECHANICS LIEN

ATTENTION!

Upon the recording of this claim of mechanics lien with the county recorder's office, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must, under the law, be commenced not later than ninety (90) days after the recording of the lien.

The following has been provided for the work of improvement on your property:

(description of work provided)

The claimant who provided this work of improvement has not been fully paid. You are receiving this notice because it is a required step in filing a mechanics lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay for the labor, materials, or improvements that were provided.

FOR YOUR PROTECTION, YOU MAY WISH TO CONSULT AN ATTORNEY. YOU MAY ALSO CONTACT THE CONTRACTORS' STATE LICENSE BOARD AT WWW.CSLB.CA.GOV FOR INFORMATION ABOUT THE CONTRACTOR WHO PROVIDED THE WORK OF IMPROVEMENT.

[// GUIDANCE: The above Notice of Mechanics Lien language is required by Cal. Civ. Code § 8416(a)(8). It must appear in at least 10-point boldface type. The final sentence must appear in all uppercase letters, except the web address. Failure to include this notice will render the lien unenforceable as a matter of law (§ 8416(c)).]


VERIFICATION

(Required by Cal. Civ. Code § 8416(a))

I, [________________________________], declare as follows:

I am the ☐ claimant ☐ authorized officer/agent of the claimant named in this Claim of Mechanics Lien. My title or position is [________________________________].

I have read the foregoing Claim of Mechanics Lien and know its contents. I have personal knowledge of the facts stated herein, and I know those facts to be true.

The amount claimed in this Claim of Mechanics Lien is a good faith estimate of the amount due after deducting all just credits and offsets. The claim does not include any amount that the claimant does not in good faith contend is owed to the claimant.

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

Executed on [__/__/____] at [________________________________], California.

Signature: ________________________________

Printed Name: [________________________________]

Title: [________________________________]

[// GUIDANCE: Under Cal. Civ. Code § 8416(a), the claim of lien must be "signed and verified by the claimant." Verification means a declaration under penalty of perjury. An officer, agent, or employee of the claimant with personal knowledge may verify the claim on behalf of the claimant. A defective verification may render the lien invalid.]


PROOF OF SERVICE

(Required by Cal. Civ. Code § 8416(a)(7))

I, [________________________________], declare:

I served a true and correct copy of the foregoing Claim of Mechanics Lien, including the Notice of Mechanics Lien, on the owner or reputed owner of the property described herein as follows:

Person Served: [________________________________]

Address of Service: [________________________________]

Date of Service: [__/__/____]

Method of Service:

  • Registered mail, return receipt requested, to the address stated above
  • Certified mail, return receipt requested, to the address stated above
  • First-class mail, postage prepaid, to the address stated above
  • Personal delivery to the above-named person at the address stated above

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

Executed on [__/__/____] at [________________________________], California.

Signature: ________________________________

Printed Name: [________________________________]

[// GUIDANCE: Service of a copy of the recorded claim of lien on the owner or reputed owner is mandatory under Cal. Civ. Code § 8416(c). Failure to serve the copy, including the Notice of Mechanics Lien, renders the lien unenforceable as a matter of law. Service may be by registered mail, certified mail, or first-class mail (§ 8416(b)).]


NOTARY ACKNOWLEDGMENT

(Optional but Recommended for Recording Purposes)

State of California
County of [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public, personally appeared [________________________________], who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public Signature: ________________________________

Notary Name (Printed): [________________________________]

Commission No.: [________________________________]

My Commission Expires: [__/__/____]

(Notary Seal)


PART FIVE: LIEN ENFORCEMENT

A. Enforcement Deadline (Cal. Civ. Code § 8460)

  • A mechanics lien must be enforced by filing a lawsuit to foreclose the lien within 90 days after the date the claim of lien is recorded
  • If no enforcement action is commenced within 90 days, the lien expires and is unenforceable (Cal. Civ. Code § 8460(a))
  • The 90-day enforcement deadline is jurisdictional and may not be extended
  • A court may, upon noticed motion, extend the credit for circumstances under Cal. Civ. Code § 8462

B. Lis Pendens

  • Upon filing the lien foreclosure action, the claimant should record a lis pendens (notice of pending action) in the county recorder's office to provide constructive notice to third parties (Cal. Code Civ. Proc. § 405 et seq.)

C. Petition to Release Lien (Cal. Civ. Code § 8480)

  • The owner may petition the court to release a mechanics lien if:
  • The claimant has not commenced an action to enforce the lien within the time prescribed by § 8460
  • The owner has provided the claimant at least 10 days' notice demanding the claimant execute a lien release, and the claimant has failed to do so
  • The court shall order the release unless the claimant shows the action was commenced in a timely manner

[// GUIDANCE: Mark your calendar for the 90-day enforcement deadline immediately upon recording the lien. This is a hard deadline with no extensions except as provided by § 8462. Missing this deadline permanently extinguishes the lien.]


PART SIX: LIEN WAIVER AND RELEASE FORMS

A. Overview of Statutory Release Forms

California law provides four mandatory statutory forms for waiver and release of lien rights. Only the statutory forms (or forms substantially similar) are effective (Cal. Civ. Code §§ 8120-8138). A waiver or release not in the proper statutory form is void and unenforceable.

B. The Four Statutory Forms

1. Conditional Waiver and Release on Progress Payment (Cal. Civ. Code § 8132)

  • Used during the project for progress payments
  • Lien rights waived only upon actual receipt of payment (conditioned on check clearing)
  • Covers work through the date stated and for the amount stated
  • Effective only if the claimant is actually paid

2. Unconditional Waiver and Release on Progress Payment (Cal. Civ. Code § 8134)

  • Used during the project for progress payments
  • Lien rights waived immediately upon signing, regardless of whether payment clears
  • Covers work through the date stated and for the amount stated
  • The claimant bears the risk of nonpayment after signing

3. Conditional Waiver and Release on Final Payment (Cal. Civ. Code § 8136)

  • Used when final payment is being tendered upon completion of the claimant's work
  • Lien rights waived only upon actual receipt of payment (conditioned on check clearing)
  • Releases all lien, stop payment notice, and payment bond rights upon payment

4. Unconditional Waiver and Release on Final Payment (Cal. Civ. Code § 8138)

  • Used when final payment has been received upon completion of the claimant's work
  • Lien rights waived immediately upon signing, regardless of whether payment clears
  • Releases all lien, stop payment notice, and payment bond rights immediately

[// GUIDANCE: Always advise clients to use conditional waivers until payment has actually been received and confirmed. Unconditional waivers should only be executed after the claimant has confirmed that payment has cleared the bank. Signing an unconditional waiver before receiving payment can result in permanent loss of lien rights.]


PART SEVEN: STOP PAYMENT NOTICE (Cal. Civ. Code §§ 8500-8560)

A. Purpose

A stop payment notice is a written demand to the person holding construction funds (the owner or construction lender) to withhold a sufficient amount from payments otherwise due to the direct contractor to satisfy the claimant's demand.

B. Who May Give a Stop Payment Notice (Cal. Civ. Code § 8502)

Any claimant may give an owner a stop payment notice, including:

  • ☐ Subcontractors
  • ☐ Material suppliers
  • ☐ Equipment lessors
  • ☐ Laborers

[// GUIDANCE: A stop payment notice is a separate and independent remedy from the mechanics lien. A claimant may pursue both remedies simultaneously.]

C. Unbonded Stop Payment Notice

  • Served on the owner holding construction funds
  • The owner must withhold the amount claimed from payments otherwise due to the direct contractor (Cal. Civ. Code § 8506)
  • An owner who fails to withhold funds after receiving a valid stop payment notice may be personally liable for the amount that should have been withheld

D. Bonded Stop Payment Notice (Cal. Civ. Code § 8510, § 8532)

  • A stop payment notice accompanied by a bond in an amount equal to 125% of the amount claimed
  • Required to compel a construction lender to withhold funds
  • The construction lender is only required to withhold funds upon receipt of a bonded stop payment notice
  • The bond must be issued by an admitted surety insurer

E. Deadlines for Stop Payment Notice

  • Private works: Must be given before the expiration of the time within which a claim of mechanics lien may be recorded (i.e., same deadlines as lien recording)
  • Must be served before construction funds are fully disbursed

PART EIGHT: PAYMENT BOND CLAIMS (Cal. Civ. Code §§ 8600-8614)

A. Overview

A payment bond is a surety bond given by the direct contractor to guarantee payment to subcontractors, material suppliers, and other claimants. Payment bonds are not mandatory on private works but may be required by the owner or construction lender.

B. Who May Claim Against a Payment Bond (Cal. Civ. Code § 8602)

  • ☐ Subcontractors
  • ☐ Material suppliers
  • ☐ Equipment lessors
  • ☐ Laborers
  • ☐ Any claimant who has furnished work for the project and has served the required preliminary notice

C. Requirements for Payment Bond Claims

  1. The claimant must have served the required preliminary notice (§ 8200) unless exempt
  2. The claimant must give written notice to the surety and the bond principal of the claim within the applicable time period
  3. The claimant must file an action on the payment bond within six (6) months after the expiration of the period to record a claim of lien (Cal. Civ. Code § 8609)

D. Effect of Payment Bond on Lien Rights

  • If the direct contractor records a payment bond under Cal. Civ. Code § 8600 and serves notice thereof, the lien rights of subcontractors and suppliers may be limited to the bond
  • Recording of a proper payment bond may allow the owner to require release of mechanics liens in exchange for bond protection

PART NINE: DESIGN PROFESSIONALS LIEN (Cal. Civ. Code §§ 8300-8318)

A. Special Lien Rights for Design Professionals

A design professional (as defined in Cal. Civ. Code § 8014) has special lien rights even when the work of improvement has not yet commenced:

  • The design professional must have a written contract with the landowner (§ 8300)
  • A building permit or governmental approval must have been obtained in connection with the design professional's services (§ 8302)
  • The design professional must provide at least 10 days' notice to the landowner demanding payment before recording the lien (§ 8304)

B. Conditions for Design Professional Lien (Cal. Civ. Code § 8304)

All of the following must be satisfied:

  1. ☐ The work of improvement has not commenced
  2. ☐ The landowner has defaulted on a payment required under the contract or has refused to pay a demand
  3. ☐ The design professional has given the landowner at least 10 days' notice demanding payment and stating that a default has occurred

C. Amount of Design Professional Lien (Cal. Civ. Code § 8306)

The lien amount is limited to the lesser of:

  • The design professional's fee for services provided under the contract, or
  • The reasonable value of those services

Reduced by the amount of any deposit or prior payment under the contract.


PART TEN: LIEN PRIORITY AND ATTACHMENT

A. Lien Attachment (Cal. Civ. Code §§ 8440-8442)

  • A mechanics lien attaches to the work of improvement and to the real property on which the work of improvement is situated
  • The lien includes as much space about the work of improvement as is required for the convenient use and occupation of the work of improvement
  • Where a work of improvement is located on property owned by multiple persons, the lien attaches only to the interest of the person who caused the work to be done (§ 8442)

B. Lien Priority (Cal. Civ. Code §§ 8446-8450)

  • All mechanics liens relate back to the date of commencement of the work of improvement (Cal. Civ. Code § 8450)
  • Mechanics liens are generally prior to any lien, mortgage, deed of trust, or other encumbrance that attaches to the property after the commencement of the work of improvement
  • A construction deed of trust recorded before commencement of work generally has priority over mechanics liens, subject to the optional and obligatory advances rules

C. Commencement Date

Commencement means the first actual and visible work of improvement on the site, including:

  • ☐ Site preparation or grading
  • ☐ Demolition
  • ☐ Physical delivery of materials to the site
  • ☐ Beginning of excavation

[// GUIDANCE: The commencement date is critical for priority disputes. Document the date of first visible work on the site carefully. The delivery of materials alone may not constitute commencement unless the materials are incorporated into the work.]


PART ELEVEN: DEADLINE SUMMARY CHECKLIST

Critical Deadlines

Event Deadline Code Section
Preliminary notice (20-day notice) Within 20 days of first furnishing labor/materials § 8204
Owner to record Notice of Completion Within 15 days of completion § 8182
Owner to record Notice of Cessation Within 15 days of cessation of labor (after 30 continuous days of cessation) § 8170
Direct contractor to record lien (no NOC/NOS) 90 days after completion § 8412
Other claimants to record lien (no NOC/NOS) 90 days after completion § 8414
Direct contractor to record lien (after NOC/NOS) 60 days after NOC/NOS recorded § 8412
Other claimants to record lien (after NOC/NOS) 30 days after NOC/NOS recorded § 8414
Enforcement action (lien foreclosure) 90 days after recording the lien § 8460
Payment bond claim action 6 months after expiration of lien recording period § 8609

Pre-Recording Checklist

  • ☐ Preliminary notice served within 20 days of first furnishing (or late notice calculated correctly)
  • ☐ Verified whether Notice of Completion or Notice of Cessation has been recorded
  • ☐ Confirmed recording deadline based on applicable scenario
  • ☐ Verified claimant's contractor license is active and in good standing (if applicable)
  • ☐ Confirmed lien amount reflects all just credits and offsets
  • ☐ Legal description is accurate and sufficient for identification
  • ☐ Claim of lien includes all required content under § 8416
  • ☐ Statutory Notice of Mechanics Lien language included in at least 10-point boldface type
  • ☐ Claim of lien is properly verified under penalty of perjury
  • ☐ Proof of service affidavit completed
  • ☐ Copy of recorded lien served on owner or reputed owner
  • ☐ Calendar the 90-day enforcement deadline immediately upon recording

Post-Recording Checklist

  • ☐ File lien foreclosure action within 90 days of recording
  • ☐ Record lis pendens upon filing foreclosure action
  • ☐ Serve all required parties with summons and complaint
  • ☐ Consider pursuing stop payment notice and/or payment bond claim as alternative or additional remedies

PART TWELVE: PENALTIES FOR FRAUDULENT LIEN

A. Forfeiture (Cal. Civ. Code § 8422)

A claimant who willfully includes in a claim of lien labor, services, equipment, or materials not furnished for the property described in the claim forfeits the lien in its entirety.

B. Liability for Damages (Cal. Civ. Code § 8424)

A person who records a claim of lien containing a willfully exaggerated amount, or who files a claim against property not subject to a lien, is liable to the property owner for:

  • Actual damages sustained
  • Reasonable attorney's fees

[// GUIDANCE: Advise clients to be conservative and accurate in calculating the lien amount. Willful overstatement of the lien amount can result in complete forfeiture of the lien and personal liability for damages and attorney's fees.]


PART THIRTEEN: EXHIBIT "A" — LEGAL DESCRIPTION

(Attach full legal description of the property here if not included in the body of the Claim of Lien)

Legal Description:

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

Assessor's Parcel Number(s): [________________________________]


Sources and References


Prepared for attorney review. This template is provided for informational purposes only and does not constitute legal advice.

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MECHANICS LIEN CLAIM

STATE OF CALIFORNIA


Effective Date: [DATE]
Party A: [PARTY A NAME]
Address: [PARTY A ADDRESS]
Party B: [PARTY B NAME]
Address: [PARTY B ADDRESS]
Governing Law: [GOVERNING STATE]

This document is entered into by and between [PARTY A NAME] and [PARTY B NAME], effective as of the date set forth above, subject to the terms and conditions outlined herein and the laws of [GOVERNING STATE].
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