Legal Question in Construction Law in California

do i need to be a licensed contractor to file a mechanics lien


Asked on 9/01/09, 1:59 pm

2 Answers from Attorneys

Thomas W. Newton Tims & Newton

Not necessarily. A person working for wages who has not been paid may record a claim of mechanics lien. Likewise an unpaid materials supplier can record, if a 20-day preliminary notice was timely served.

However, if you contracted with the owner or another contractor to perform work as a contractor, there's no point in recording a lien. Unlicensed contractors are prohibited from bringing any court action to recover contract damages. This would include a cause of action to foreclose the lien. After 90 days, when no lawsuit has been filed, the lien will go stale by operation of law. If you refuse to release the stale lien, you may be forced to do so in court, and end up paying the owner's attorney's fees.

Let me know if you need further information.

Regards,

Tom Newton

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Answered on 9/01/09, 2:25 pm
Bruce Beal Beal Business Law

Although I generally agree with the above advice, you can file a lien as an unlicensed contractor; but if you are unlicensed, and you should be, you will not be able to enforce the lien filed as required within 90 days, if the owner makes it come to that.

In great detail, the law literally states that �mechanics, materialmen, contractors, subcontractors, lessor of equipment, artisans, architects, registered engineers, licensed land surveyors, machinists, builders, teamsters, and draymen, and all persons and laborers of every class performing labor upon or bestowing skill or other necessary services on, or furnishing materials or leasing equipment to be used or consumed in or furnishing appliances, teams, or power contributing to a work of improvement shall have a lien upon the property...." Please note that the word �licensed� is used with land surveyors, but it is not used for contractors, etc. We must assume that this was done purposely.

If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided by Avvo or through my firm�s website located at BealBusinessLaw.com.

IMPORTANT: The above material does not constitute legal advice and should not be relied on. It does not create an attorney-client relationship. Each locality has differing laws. Each matter has differing facts. A legal matter cannot be satisfactorily resolved without a comprehensive review and analysis of all the unique facts and laws at issue by an able attorney. Your matter may result in a loss of rights if you do not timely retain such an attorney.

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Answered on 9/09/09, 8:07 pm


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