What is a Mechanic’s Lien in California?

Construction workers looking over a project

Construction is critical for the advancement of new buildings and updating properties across the world. In California, lawmakers have created rules that ensure those who work for the construction industry are given due payment if they work on a project. If a business or individual does not pay a construction company for proper work completed, a mechanic’s lien can be put in place.

A mechanic’s lien allows a contractor or mechanic to claim possession of equipment or vehicles used for their work if they are not paid for their services. This right allows the lienholder to take possession of the property and sell it to recoup their losses.

Liens are essential because they provide security for those who extend credit or perform work on property. Without this protection, many businesses could struggle as they would constantly be at risk of non-payment.

Filing a Mechanic’s Lien

To file a mechanic’s lien, the contractor or mechanic must first notify the customer or client that they intend to do so. This notice must be given in writing and must be served either personally or by certified mail. Once the notice has been given, the lienholder has a specific period in which they can file the lien. If they do not file within this timeframe, they forfeit their right to do so.

Once the lien is filed, the contractor or mechanic can take possession of the property in question. They may then sell the property in order to recoup their losses. In some states, the lienholder is also entitled to interest and attorneys’ fees.

Considering Filing a Mechanic’s Lien?

If you are a contractor or mechanic who has not been paid for your work, you may have the right to file a mechanic’s lien. This legal right can help you recover the money you are owed, and protect your business interests.

The mechanic’s lien attorneys at Purdy & Bailey, LLP are here to help if you or your business is considering filing this type of lien. See how we fight for creditors’ rights and contact us to schedule a consultation. (858) 360-7080

Related Posts
  • California S Corporations vs. California C Corporations Read More
  • What Is the Role of a Business Lawyer in Mergers and Acquisitions? Read More
  • How Can a Business Lawyer Support Your Company's Compliance with State and Federal Regulations Read More