Legal Question in Construction Law in California
How do I extend a mechanics lien in order not to have to expend the money to sue on the mechanics lien within the 90-day period. I have been informed by the construction lending institution that they are going to now withhold funds due to the mechanics lien that is in place for funds not paid by the owner. Can I now re-submit with a new mechanics lien including the construction lender funds in order to extend the timeline out for which I must sue on the mechanics lien.
2 Answer from Attorneys
There is no way to extend a mechanics lien exept in some circumstances where you can release it and refile, or if you enter into an agreement for extending credit to the owner in lieu of paying the amount due that is the basis for the lien. If you are within the time to file a mechanics lien in the first place, you can release a prior lien and file a new one and restart the clock. You would need a customized form of release, however, because the standard form releases are based on payments. If you release your lien and the time for recording new liens has passed, you will be out of luck entirely. Calculating when liens must be recorded is rather tricky, so releasing a validly recorded lien is very risky. Your other option is to enter into a credit agreement with the owner. Extending credit to the owner keeps a mechanics lien alive, but it must be by mutual agreement, and properly documented. All in all, you are probably better off just getting a mechanics lien case on file, than trying to use technicalities to get around it. Filing fees and court runner services will run less than $500. I've handled hundreds of mechanics lien cases in my career and could get it put together and filed for you very inexpensively, and might be willing to take the matter on a contingent fee, meaning only the filing fees and court services costs up front. Getting the case on file in time is pretty cheap insurance compared to the risk of losing the lien by relying on a technicality that you might mistakenly not properly handle. Please feel free to contact me if you would like to discuss this further.
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