By Dave Barnier
A California preliminary notice must be served within twenty days of the claimant first providing labor and/or materials and/or equipment etc. (benefit) to the project - otherwise, the claimant loses his entire mechanic's lien rights
Not true! That's a huge misconception!
A mechanic's lien claimant (this would be the subcontractor, supplier, or service provider) should serve his California preliminary notice on the reputed property owner, reputed lender, etc. within 20 days of his start date.
His start date is the date that he first provides benefit to the project. The preliminary notice can also be served before the job starts.
But all is not lost if the deadline date is missed!
"If he misses the 20-day deadline and serves his California preliminary notice more than 20 days after his start
date, the claimant does not lose his entire mechanic's lien rights."
He still has mechanic's lien rights for all the labor/materials/equipment/etc. that he's provided from the date 20 days prior to the date that he served the Preliminary Notice, forward - because a preliminary notice covers 20 days back from the date the preliminary notice form is served.
The date of service is determined by the date that the preliminary notice is mailed so, the preliminary notice covers 20 days back from the date the preliminary notice is mailed or served.
"So, even if you miss the 20-day 'deadline', still serve the California preliminary notice to protect the balance of your lien rights."
The California preliminary notice must be served by certified mail, and the green card receipts must be retained to show proof of delivery (or proof that delivery was attempted but refused by the recipient).
In addition, there's no such thing as a Preliminary Notice being served too early.
Because the preliminary notice covers 20 days back from the date it is served, it can be served as soon as the contract has been signed, it does not have to wait until the job has been started.
Preliminary Lien Notices / Pre-Liens Word and PDF versions
Construction-Business-Forms.com |
The estimate and the identity of the owner must be reasonably investigated by the claimant prior to serving the Preliminary Notice, but once the Preliminary Notice is served, the claimant need not revise his estimate nor serve a new owner that he learns about after serving his Preliminary Notice, even if the notice was served prior to starting the job.
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Thank you to Dave Barnier for the above information. :) Mr. Barnier is a practicing litigation attorney in San Diego CA and can be reached at 619.682.4842.
The information in this article is based upon California law current at the time of writing and is provided for general information, only. The information provided illustrates laws and legal principals in general. Any information or analysis presented in this article is intended solely to educate the reader on general issues. A comprehensive review of facts, documents, and applicable laws is always required before any attorney can competently provide any legal advice regarding any particular situation. In short: Please do not rely on any part of this article when analyzing any specific situation affecting you or your business.
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Diane
If the address on the Grant Deed is
different than the address on the prelim information given to us by the
General Contractor, who do we send it to?
The Who, What, When, Where, Why, and How - not necessarily in that order :o)
Just because you missed the deadline doesn't mean that all is lost!
A preliminary lien notice won't do you any good if they don't go to the correct entities.
Who is supposed to get your preliminary lien notice?
Unfortunately, a prelim is required to file a lien, even if you're a supplier.
It's bad to miss the deadline, so bad that it'll cost you at least some of your lien rights.
Arizona requires preliminary liens prior to mechanic's liens.
Send your Arizona Preliminary Liens to these entities.
California 20-Day Preliminary Lien Notices
Construction-Business-Forms.com |
Don't get stiffed - An Arizona preliminary notice can help protect against that
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I am an architect who is having difficulty with the final payment of fees...
You didn't do a preliminary notice and now the {friggin'} Owner won't pay up
Did someone refuse your preliminary lien notice?
Preliminary liens allow you to file "real" liens
Don't miss the deadline for the Arizona preliminary liens
The potential ramifications of using one preliminary notice for several locations when they're all under the same contract
California 20-Day Preliminary Lien Notice
Construction-Business-Forms.com |
Make sure the $ amount on the prelim is as accurate as possible
Why you should serve the owner with a prelim even if he posts a notice of non-responsibility
Can the signature on a preliminary notice be a copy/fax or must it be 'wet'/original?
Is it better to amend the notice, or issue a new one?
Brief information about preliminary liens protecting lien rights
Where to send the preliminary liens
California 20-Day Preliminary Notices
Construction-Business-Forms.com |
Information that a prime/general/direct contractor's lien notice must contain
Information that a subcontractor's lien notice must contain
When working in Arizona be sure to timely serve the preliminary notice *to the correct parties* or there could be trouble
A primer on preliminary liens
Preliminary liens can help save you from being 'stiffed' on the job!
Research property records when doing your preliminary notices
Thoughts about using a company that handles your preliminary notices for you
A detailed step-by-step explanation of how to process preliminary notices
Tracking the paperwork, the proof of service, and the USPS documents for prelims
California 20-Day Preliminary Lien Notices
Construction-Business-Forms.com |
Make sure your prelims go to the correct entities
Mishandling of, or not processing, preliminary liens is one of the top 10 mistakes contractors make
At one time the California preliminary notice form was mandated by California to be titled "20-Day
Preliminary Notice Form" (exactly, word for word). The California mandate has since changed and
the form is now known as the "Preliminary Notice Form" (again, exactly, word for word). Make sure what your state requires and make sure your forms are valid.
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