With the coming of the new year, we believe that it would be a good idea to highlight a new law that effects many of our clients in the construction industry. This past year, the legislature passed legislation to change the procedure for a mechanics' lien.
Beginning on January 1, 2011, all new mechanic’s liens must include new and additional elements. Also, mechanic’s lien claimants must take new and additional steps to notify all interested parties of the mechanic’s lien on the property. In short, a mechanic’s lien claimant now must serve the owner of the property with the mechanic’s lien and a proof of service of the mechanic’s lien must be recorded with the mechanic’s lien in order for the mechanic’s lien to be considered enforceable. Also, there is new language entitled “Notice of Mechanic’s Lien” that must be included with all mechanic’s liens to be considered enforceable under California law. To see the exact language, which includes specific fonts and certain phrases that are required to be underlined and bolded, see California Civil Code Section 3084.On top of the new requirements for an enforceable mechanic’s lien, it is now mandatory that a party who has filed a complaint to foreclose on a mechanic’s lien record a lis pendens (a.k.a. notice of pendency of action) with the county recorder for the county in which the action was filed, within 20 days of filing the complaint.
These new requirements significantly increase the burden on any party asserting a mechanic’s lien. For further clarification, feel free to give our office a call to discuss with an attorney the specifics of the changes being brought in with 2011.
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