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California Preliminary Notice: The Why, Who, What, When, and How

Preliminary notices are the building blocks to the mechanics lien process. Subcontractors and suppliers (and sometimes general contractors and design professionals) must send notice to protect their ability to file a lien. General contractors, property owners, and lenders rely on notices to paint a picture of who is working on their projects. California has a […]

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California Courts Push Right to Repair Act In The Right Direction

Home Construction Is Growing - Send Your Notices

California’s Right to Repair Act (Cal. Civ. Code § 895 et seq.) is designed to provide homeowners with exclusive remedy for damages arising out of certain construction defect claims. Originally, California courts in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 1194, had ruled that homeowners could file common law claims outside of the […]

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Did True Detective Just Use Liens as a Major Plot Point?

Vince Vaughn plays Frank Semyon, a property owner in True Detective

WARNING: Massive spoilers for the television show True Detective are in this article. Read at your own risk.       It’s not often that massively popular television shows reference liens. It’s even more unconventional that a television show as wildly popular and controversial as True Detective uses liens as a major plot point. The […]

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Dispute over “Disputes” – What’s More Fair in CA Prompt Pay Law?

In order to gain some protection against paying for disputed or insufficient work, or from claims made by subcontractors and suppliers, public entities are allowed to withhold certain funds otherwise due to contractors. However, this ability to retain funds is strictly controlled and regulated by the state’s retainage laws, and works in conjunction with specific requirements […]

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Mechanics Lien Law 2015: A Trend Toward Fairness

2014 was a busy year for mechanics lien law, with significant changes either enacted or contemplated in a large number of states. Changes ranged from providing a more clear definition of what constitutes the “commencement” of an improvement in Nevada, to the creation of an entirely new-from-the-ground-up mechanics lien law scheme in Mississippi. So far […]

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California Court Allows Subordination of Mechanics Lien to Deed of Trust

Mechanics liens are powerful tools to secure payment, but in some situations, it’s ultimately a lien’s priority that determines whether or not the lien claimant will be paid. If proceeds from a foreclosure sale are insufficient to cover all encumbrances against the property, parties at the end of the priority line can be left out in […]

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California Prompt Payment Statutes Can Lead To Significant Penalties

The laws, rules, and regulations surrounding construction payment are complex, indicate, and can have significant consequences if not followed. As well as providing remedies for nonpayment (such as the security provided by mechanics liens) there are specific rules related to the time in which specific payment must be made, what percentage of the contract may […]

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New California Notary Wording Means Changes for Lien Releases

Mechanics liens in California are not specifically required to be notarized in order to be valid. In fact, the confusing requirement that a California mechanics lien be “verified” but it’s not required to be “notarized” has been the subject of numerous articles and FAQ answers. A California mechanics lien release, however, should be notarized. This […]

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Simplifile and e-Recording Services: Benefits and Limitations

One of the conveniences of technology is the ability to accomplish things in a shorter amount of time than it would take to do the same task in an “analogue” fashion; email is faster than sending a piece of mail through the postal service. In many circumstances, the filing of construction notices and mechanics lien claims […]

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California Mechanics Liens: 5 Things You Need To Know

single-lien-california

As a state with a robust construction economy, California has served up plenty of topics to discuss in the Construction finance Journal. Many of the articles discussing California mechanics lien law, however, have been specifically focused on one aspect of the law, one case, or one particular requirement. This post will give an overview of the […]

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