California Mechanic’s Liens New Law

The California Constitution gives workers the right to record a mechanic’s lien for the value of labor and materials provided for the improvement of real property prior to filing an action against the owner of the property.

AB 457 (effective Jan. 1, 2011) requires that a mechanic’s lien and Notice of Mechanic’s lien must now be served on the owner of the property (or on the construction lender or the original contractor if those parties cannot be served). If it is not properly served, as described in the statue, the lien is unenforceable.

This law also requires a proof of service affidavit to be completed and signed by the person serving the Notice of Mechanic’s Lien.

In addition, after the filing of the complaint to foreclose on the mechanic’s lien, the notice of the pendency of the proceedings (e.g., lis pendens) must be recorded no more than 20 days after the filing of the mechanic’s lien foreclosure action. Only from the time of recording the lis pendens will a purchaser or encumbrancer of the property be deemed to have constructive notice of the pendency of the actions.

California lawyers