Legal Question in Construction Law in California

Yes, there is a time limit. If you had a direct contract with the homeowner, your lien must be recorded within 90 days after completing your contract if no "Notice of Completion" has been recorded. If a Notice of Completion has been recorded with the county, you must record the mechanic�s lien within 60 days after the recording of the Notice of Completion.

If you were a subcontractor and did not have a direct contract with the homeowner, you must record the mechanic�s lien after completing your contract, but not more than 90 days after completion of the entire project if no Notice of Completion has been recorded. Again, if a Notice of Completion has been recorded, you must record your lien within 60 days of that.

If you are a subcontractor, in order to record your lien, you must have served a preliminary notice, or else your lien will be invalid.

Also, after the recording of your mechanic's lien, you have a very limited amount of time to file a lawsuit to enforce the lien. Your lawsuit must be filed not later than 90 days after recording of the mechanic's lien, and this cannot be done in small claims court.

The rules and procedures for mechanic's liens are extremely detailed, and deadlines and the format of your lien (and preliminary notice, if applicable) are very specific. Screw up one "small" thing and you may lose your right to enforce the lien. The laws have recently changed regarding mechanic's lien requirements, so do not rely on old forms you have or that other contractors may give you. Seek legal help to make sure your lien will be valid.

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A contractor has a right to a lien as soon as he provides services or materials, but must follow certain procedures to perfect and enforce his (or its') lien. Generally, this involves giving the owner a preliminary notice not later than 20 days after doing any work to be covered by the notice, and the notice should be recorded with the County Recorder; then, on or before the earlier of 90 days after completion of the work or (less commonly) 60 days after the owner records a notice of completion or cessation, the contractor must file a "claim of mechanic's lien". If you want to read the actual statutory language, go to the Civil Code....the new law that became effective July 1, 2012 is set forth starting with section 8000, and the relevant section covering contractors in direct contract with the owner is section 8412. Section 8414 covers lien claimants other than direct contractors, such as subcontractors, equipment lessors, material suppliers, laborers, etc. Then note that section 8460 says the claimant shall commence an action to enforce a lien within 90 days of filing (recording) the claim of mechanic's lien. So, altogether I'd say there are three critical dates: the preliminary notice, the claim of lien, and the commencement of suit. This is a fairly tricky area of law and if you have any doubts, I'd recommend seeing a lawyer with construction contract experience.