Legal Question in Construction Law in California
release of mechanics lien
I filed a mechanics lien early before finishing the job - General was not paying. The homeowner agrees to pay me the remaining balance minus one installment payment that General is supposed to pay. General's attorney has stated that after we recieve their installment payment we must release the lien because the lien is good only for work that had been rendered.
Generals payment does not cover the work that ws rendered. Question: How long do we have to release the lien after the dollar amount is satisfied satisfied? And General take legal action against us? Thank you
2 Answers from Attorneys
Re: release of mechanics lien
If the GC's payment does not fully pay the mechanics lien amount, and the mechanics lien amount is correct, then you should not release the lien until you have received full payment of the mechanics lien amount. If you are claiming additional money beyond the amount of the mechanics lien, you will have to do that outside the mechanics lien procedure. Also, you have to foreclose on the mechanics lien with the statutory time in order for you to take advantage of it.
Re: release of mechanics lien
Attorney for General is correct. If he/she is smart, he/she will insist that you release lien concurrently with payment of the money. It is common to require the release be exchanged at the same time as payment.
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