Mechanics Lien Judgment vs Money Judgment
Likes and differences between the mechanics lien judgment and the money judgment
A "money judgment" can be based upon a contract, a tort (such as a
personal injury claim), or various other types of claims. A money
judgment can be enforced by levying almost all types of property owned
by the judgment debtor.
By contrast, a judgment on a mechanic's lien merely entitles the
mechanic's lien claimant to implement a foreclosure sale as to the
property, with the proceeds of the foreclosure sale going to the parties
with claims on the title in the order of their priority.
The mechanic's lien judgment doesn't allow for levying of accounts or other property.
Unlike a "money judgment", a mechanic's lien judgment does not allow the claimant to levy any bank accounts or any other personal property of the owner.
A mechanic's lien by itself does not entitle the claimant to an equitable claim in the property until a lawsuit has been filed on the mechanic's lien and a judgment is entered on the mechanic's lien.
There's definitely a big difference when it comes to mechanics lien judgments vs other judgments.
How the mechanic's lien affects the property owner
A mechanic's lien is recorded with the county recorder and is seen by any person that researches the title to the property at the county recorder's office.
The mechanic's lien provides notice to any interested person that the claimant may pursue his equitable claim against the property via a lawsuit (or at least that the claimant has reserved his right to pursue his equitable claim via a lawsuit).
If a judgment is ultimately entered after a lawsuit on the mechanic's lien is filed, the claimant has the right to foreclose on the property and to recover the proceeds of a foreclosure sale according to the claimant's position on title.
The mechanic's lien judgment should keep the owner from being able to sell his property because buyers don't want liens. It can also keep him from getting home equity loans.
Lenders will be concerned about lending money to a property owner if a mechanic's lien has already been recorded, as the mechanic's lien would provide the mechanic's lien claimant with "priority" over the lender if the claimant obtains a judgment on his mechanic's lien.
Likewise, potential purchasers of the property typically will require that the title to the property be "free and clear" at the time the property is purchased, as mechanic's liens are still valid against the property even if the owner sells the property.
--
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.
California Mechanics Lien Form
Word and PDF
Instant Download
Fill-able
Save-able
Unlimited Usage!
Includes In-Depth Instructions
Construction-Business-Forms.com
Please scroll down, below the comments box, for a series of articles on mechanics lien law...
Bookmark me!
Bookmark my site and let me help you with your construction project management - together we'll crush the chaos of contracting!
Be sure to subscribe to my free newsletter to stay updated on happenings here at the site, updates to the downloadable construction forms, and ongoing news in the construction world.
Thank you for visiting and have a great day!
Diane
Article Series: Mechanic's Lien Law
Mechanic's lien laws
Lack of in-depth knowledge, or access to information, will cost you.
How to file a California mechanic's lien: 3 easy steps
It can seem intimidating but really, filing the mechanic's lien is the easy part...
Extending a mechanic's lien
Can, and should, a mechanic's lien be extended?
Notice to owner
How to prepare and serve this important document
Mechanics Lien Form Dollar Amounts
The value of a mechanic's lien isn't always equal to the contract balance owed to the claimant at the end of the project.
California Mechanics Lien Form
Excel and PDF
Instant Download
Fill-able
Save-able
Unlimited Usage!
Includes In-Depth Instructions
Construction-Business-Forms.com
Mechanics Lien Form, Attorney Fees, and Interest
You can collect both, in different manners, but neither can be added to the mechanics lien form.
Mechanics Lien Judgment vs Money Judgment
There are definite differences between them.
Filing a Mechanic's Lien in Colorado
Contains an infographic with easy step-by-step information on how to file a mechanic's lien in Colorado.
How soon can a mechanics lien form be recorded?
If you record a mechanic's lien too soon you could lose all rights.
The California Preliminary Notice Covers Up to 20 Days Back
Just because you missed the deadline doesn't mean that all is lost!
The Mechanics Lien Form Deadline to Record
The deadline is either 30 days or 90 days, depending on...
California mechanic's lien laws, preliminary notices, and change orders
Do you have to do a preliminary notice for change orders?
Property Lien and Equipment Rental Companies
Can an equipment rental company file a property lien (aka mechanic's lien)?
Make ANY Form Fillable!
Now, you can fill in any form on your computer - even if it's not fillable, EVEN IF IT'S just a hard copy!
Scan your hard-copy document into your computer/phone/tablet & upload it to PDFFiller to make it fillable.
You can also do this with PDF documents that aren't yet fillable; upload them to PDFFiller to make them fillable.
You'll be able to use your newly fillable forms over and over again, as often as you wish.
Recent Articles
-
Create Accurate Estimates as a Contractor
Feb 05, 24 03:45 PM
Boost your contractor business by mastering accurate estimates. Explore software, contracts, and strategic tips for precise project pricing. -
Construction Forms, Documents, and Articles
Jan 29, 24 03:13 PM
Construction forms and articles to help with every aspect of your construction business -
WH-347 Forms - How to fill them in
Jan 29, 24 03:02 PM
WH-347 Forms - Learn exactly how to fill in these new forms with a new expiration date of 9/30/26
Partner Websites
Lots of articles & info at the 1st construction website, started in 1999
---
You can Download Construction Forms at the 2nd website
---
You're here at the 3rd website
Free Newsletter, Free Bonus Downloads, Free Updates To Your Purchased Forms!
Back to the top of this page: Mechanics Lien Judgment vs Money Judgment
Back to home page: Construction Project Management
All articles are the opinions of the respective authors and do not necessarily represent the opinions of other persons involved with this website. Nothing on my websites is to be considered legal advice. Everything is written from "in the trenches" experience.
Please contact an attorney for specific legal and/or other advice.
Your use of my websites is your acknowledgment and agreement to this policy.
THESE ARE THE FORMS CURRENTLY AVAILABLE FOR PURCHASE
By Diane Dennis, Copyright © 2000-2024 Monk and DBug, LLC - All Rights Reserved
Psst: Look Who's Shacking Up Together - Click Here!
New! Comments
Please leave me your comments below. Facebook doesn't notify me of comments but I'm tickled when I come across them and I always respond when I see them.