California Lien Law Changes Effective January 1, 2011 – Are You Ready?
On December 15, 2010
By Scott Wolfe Jr
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Back in November 2009, we reported that the California legislature had passed an act to amend California Code § 3084 and 3146, relating to construction liens, and the new regulatory scheme was set to take effect on January 1, 2011. The effective date of the amendments is now upon California contractors and subcontractors.
You can read the Act amending the mechanics lien laws by clicking here.
Here are some key changes to the California lien laws:
Service of the Lien Upon Owner
Previously, there were no specific provisions requiring service of a recorded lien upon the property owner. As Porter Law Group reported on a website bulletin, “[p]roperty owners have long complained that until they receive the foreclosure lawsuit they are often entirely unaware that a mechanics lien had even been recorded on their property.”
To address the concern, California Civil Code § 3084 will be amended to provide a specific statement titled “NOTICE OF MECHANICS LIEN.” This identical statement must be printed in at-least 10-point boldface type on the lien itself….and it must be served upon the property owner contemporaneously with the filing of the lien.
Along with the printing of this text onto the lien, § 3084 (a)(6) also states that a “proof of service affidavit” must be completed and signed, and included with the lien, by the person serving the Notice of Mechanics Lien to the owner.
If the lien is not served, § 3084(d) provides that the “mechanic’s lien [shall be] unenforceable as a matter of law.”
Additional Changes
§3146 adds the requirement of recording a “notice of pendency of proceedings” within 20 days after the filing of the mechanic’s lien foreclosure action. §3084 also adds that reference to the user of the term “mechanics lien,” when it previously only referred to a “claim of lien.”
Zlien is Prepared
Zlien is prepared for the upcoming changes to California’s lien laws. Our Claim of Lien documents are updated to include the new Notice of Mechanics Lien language, and service of the property owner will be made as required by the statute.
Zlien can help your company manage the sending of these notices, record delivery and sending notifications, and record affidavits of service. Let us help you Lien Smarter.
Related posts:
- California Lien Law Forms, Procedures and Laws Changing on January 1, 2011
- California Lien Law Changes Are Inching Closer
- Efforts to Change California Lien Law Dead…for now
- Important California Lien Forms – FREE
- Don’t Delay Filing California Liens: County Recorder Backlogs
About the Author: Scott Wolfe Jr
Scott is the founder of Zlien, a nationwide mechanics lien and preliminary notice filing service. Zlien publishes the Construction Lien Blog, and has done so since 2007. Scott has been a leading contributor and author on the blog since it's initial publication. Scott is also the founder of Wolfe Law Group, a construction law firm that practices along the West Coast and in Louisiana. He lives in New Orleans, LA, where he was born and raised.
Great information for contractors that work in California to know. I have a few clients that work out there and will make sure they know of the new rules. These changes appear to make the California lien law much more similar to New York’s Lien Law now.
Thanks for stopping by Vincent, and for your comment. Jan 1 is coming quick now, and this is a critical change to how liens are filed.
Scott,
What effect does the vetoing of AB2419 have on the upcoming changes?
Thanks!
Hi Christine – Thanks for visiting the site and for your comment. Honestly, I didn’t know anything about AB2419. I took a look at the legislation on E-Lobbyist (http://e-lobbyist.com/gaits/text/3478). I don’t see the connection between it and the new lien laws…? Can you help me out with that?
[...] lien laws, as a number of changes were passed and took effect in 2010. We wrote about the statutory changes here at the Construction Lien [...]
[...] Recent changes to the California lien laws require you to serve a copy of the mechanic’s lien upon the property owner contemporaneously (i.e. at the same time) with filing the lien itself. In fact, as you can see from the above-explained Step 2, you must include an affidavit within the filed lien verifying that the mechanic’s lien was served on the owner. Service on the owner is now very, very important in California, and equally important is the proof you are required to have to demonstrate you served it. [...]
Scott:
Does the new lien law take effect July 1, 2012 not Jan 1, 2011? Thanks,
Tom Caudill.
Twitter: scottwolfejr
Hi Tom – Thanks for the comment. The article that we wrote above regards changes to the mechanics lien law that took effect on January 1, 2011. There are actually more changes coming to CA’s lien laws that will take effect on Jan. 2012 – but we haven’t blogged about these yet. It’s coming…
But you make a very good point. With the changes coming one year after another, it’s a good thing for folks to understand that these above discussed changes are in effect and are now the active law!
[...] With that said…here is a great mechanic’s lien form, published by the Sacramento County Public Library, and updated with the California lien law changes that took effect in January 2011. [...]
[...] California Lien Law Changes Effective January 1, 2011 — Are You Ready? [...]
[...] of the lien to the property owner and other interested parties. In California, for example, the law was just changed to require more post-lien notices to be sent to the property [...]