The California mechanics lien law lays out the circumstances and requirements for a lien. Knowing when to use a lien, or how to remove a lien, can appear confusing with strict time limits and amount constraints. Understanding the California mechanics lien law is the best way to deal with the lien process.
Using A Lien
Liens are typically used when one party owes another party money. A mechanics lien is placed on property, a business, or other physical properties to secure the money owed.
For example, a contractor who remodels a house and is not paid for their work can place a lien on the home. A lien can also be placed on the same home if the employees of the contractor do not receive payment. The lien prevents the property from being sold or even remortgaged.
California mechanics lien law allows liens to be placed on property as a way to clear up the disputed funds. The state also provides California lien release forms to help explain the process further.
California Mechanics Lien Law Time Limits
Part of understanding the California mechanics lien law is knowing the time limits. A lien may be invalid if it is filed outside of the required time window.
California has strict deadlines for recording a mechanics lien. The time starts from when the work was completed. Completed being a key term. If work is still ongoing then the lien is void. Now if the contractor has been removed from the job, and/or can no longer complete the work, then their portion is considered completed, even though the job continues.
These slight subtleties catch a lot of people up.
Without filing a lien in the proper time frame, the lien will be of little use. In general, it is expected that a lien be properly filed within the 30-day “completed” timeframe. Working with a California surety bond expert will help clear up any problems with deadlines.
The state also mandates how quickly a release of lien must be filed.
Release Of Lien Surety Bond
Dealing with a mechanics lien can be a headache. The best way to handle a lien is to quickly replace it with a surety bond. With the lien being secured by a bond, the issue over money owed can be cleared up without threat to property.
A release of lien bond removes the lien from the property and replaces it with a surety bond. The amount of the release of lien bond is based on the amount of the lien along with additional court costs.
Courts only accept a release of lien bond if the California mechanics lien law is followed. Working with Jurisco, a reputable surety bond company, means clients always receive a bond that meets state statutes. Take care of a mechanics lien easily with Jurisco.