California Assignment of Lien by General Contractor

State:
Multi-State
Control #:
US-02836BG
Format:
Word; 
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Instant download

Description

This form is an example of an assignment of a mechanic's lien. By virtue of express statutes in most states, mechanics and materialmen (persons who furnish materials for the erection of houses or other buildings), are entitled to a lien or preference in the payment of debts out of the houses and buildings so erected and to the land on which they are erected.
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FAQ

Ing to California mechanics lien law, you have 90 days from the last day you performed work or provided goods on the project to file your mechanics lien.

In California and Washington, the laws against unlicensed contractors are very strict ? unlicensed contractors have no recovery rights whatsoever. This means they cannot file a lien, or a lawsuit, or anything at all.

Contractors, subcontractors, laborers, and material suppliers can file what is called a "mechanics lien" on a homeowner's property if they don't get paid. Property owners need to be aware of the process so they can avoid financial and legal pitfalls.

The potential lien claimant must record the mechanics lien within 90 days of: Completion of work, ? When the owner began using the improvement, or ? When the owner accepted the improvement. If the potential lien claimant fails to record the mechanics lien within the appropriate time frame, the lien isn't valid.

There is no requirement in California law that you serve a notice of intent to lien.

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.

If the contractor, subcontractor, laborer, or material supplier fails to follow any of the specific time frames, you can petition the court to remove the lien. Although anyone can record a mechanics lien, unlicensed contractors cannot foreclose on a mechanics lien if the work is valued at more than $500.

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California Assignment of Lien by General Contractor