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MECHANIC’S LIEN
Fee: $229

The We The People Mechanic’s Lien form may be used to file a lien against real estate. Those who provide labor, work, or materials for the improvement of private real estate located within California, and are not paid-in-full, may have a right to enforce their claim for payment against the property.

* The fees above do not include filing, recording, or courier service fees.

 

MORE ABOUT MECHANIC’S LIEN

The We The People Mechanic’s Lien form may be used to file a lien against real estate. Those who provide labor, work, or materials for the improvement of private real estate located within California, and are not paid-in-full, may have a right to enforce their claim for payment against the property.

A Mechanic’s Lien is an effective remedy for contractors, subcontractors, and others involved in the construction or improvement of real estate to resolve payment problems. If a service or materials provider records a Mechanic’s Lien against the real estate being improved, the owner can not easily sell or refinance the property without first paying off the debt secured by the lien. A Mechanic’s Lien motivates the owner to make sure the contractors get paid.

Claimants who do not have a direct contractual relationship with the owner (e.g., subcontractors) must provide a Preliminary Notice within 20 days of furnishing labor or materials to the job. This ensures that the owner is aware of a potential claimant, so that appropriate steps can be taken to confirm that the contractor is paid. Preliminary Notices must be provided to the owner, general contractor, and lender. The Mechanic’s Lien requirements are complex and strict, so you should make sure that you have filed all the necessary notices and documents and that you comply with the time requirements. The Mechanic’s Lien form is the only such document that is prepared by We The People.

Once a Mechanics' Lien has been recorded, the claimant must file a court action to enforce the lien within 90 days unless the lien claimant grants a properly recorded extension of credit to the property owner. The lien's effective period is extended until 90 days after the credit expires, but no more than one year after the completion of the work of improvement. If no court action is filed after 90 days (and there is not an extension by that time), the lien is no longer valid. However, many title companies don't recognize this fact, and require that the lien be removed before clear title can pass to a buyer.

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