Mechanic’s Liens New Rules Effective January 1, 2011

Mechanic’s Lien recording procedures and requirements will change beginning January 1, 2011. The statute governing the form of mechanic’s liens, Civil Code Section 3084, will require that a lien and a “Notice of Mechanic’s Lien” be served on the property owner. The law does not currently require a notice to the property owner and does not require service of the lien as a prerequisite to recording and enforcement of the lien. In addition, the statute sets forth specific language that must be included in the Notice and the acceptable methods of service. The existing 20-Day Preliminary Lien Notice requirement remains in effect.

The changes apply to both residential and commercial projects and Subsection (f) of the revised statute states that “Failure to serve the mechanic’s lien, including the Notice of Mechanic’s Lien, as prescribed by this section, shall cause the mechanic’s lien to be unenforceable as a matter of law.”

Effective January 1, 2011 it will be important to follow the new statute and provide the correct notice and service otherwise the lien may be unenforceable. It is advisable to update all lien forms and procedures prior to January 1 to avoid the potential unenforceability of liens due to the failure to follow the new procedures.

If you have any questions or would like compliance assistance, please call Tom Trost at (916) 783-6262.