Legal Question in Real Estate Law in California
Liens
We are a service company. Our client has not paid his bill since May 2002 (our net term is ''upon receipt''). Can I file a Mechanic's Lien or must it be a Premiliminary Lien? What is the process in terms of filing liens (ie. how many days after work is completed can a lien be filed and when is a lien void or can no longer be filed)?
Thanx!
2 Answers from Attorneys
Re: Liens
The mechanic's lien laws require that the job involved be a work of improvement to real property. So, it's not so important that yours is a service company; what's important is the type of job and whether real estate is improved. I believe certain farming operations also count.
I suggest you get some local one-time advice on the process -- including the timing -- of the steps in filing and enforcing mechanics' liens. This could be a good one-time investment, then your office manager or contract supervisor could handle them in the future. Alternatively, there are some good paperbacks on contracting that cover California lien law adequately from a practical, layman's point of view.
Re: Liens
You are probably too late to file a Mechanic's Lien. The proceedure must be started within a short period of time.
You may need to file a suit (whether small claims or not depends on the amount) and get a judgment to attach a lien on property. A lis pendance is also a posibility.