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Preliminary Notices must be filed 20 days from first furnishing labor or materials. The Preliminary Notice requires delivering a Notice to Property Owner statement in person or by certified, registered, or express mail, or overnight delivery to the property owner, with a receipt of the mailing as proof.
Preliminary Notices allow you to track who has a potential claim against your property. Subcontractors and suppliers must provide you with this notice to maintain their right to file a lien. If they don't provide you with the notice, they lose their lien rights.
In California especially, the licensing board can fine you if you don't process a Pre-Lien Notice at the start of a job. A preliminary lien notice must be sent by certified mail within 20 days of first providing labor, services, or materials to a project.
A lien can result when the prime contractor (referred to as a "direct contractor" in mechanics lien revision statutes, effective July 1, 2012) has not paid subcontractors, laborers, or suppliers. Legally, the homeowner is ultimately responsible for payment ? even if they already have paid the direct contractor.
Preliminary Notices allow you to track who has a potential claim against your property. Subcontractors and suppliers must provide you with this notice to maintain their right to file a lien. If they don't provide you with the notice, they lose their lien rights.