Can Unlicensed Contractors Lien in California?
On December 26, 2008
By Scott Wolfe Jr
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In California, like in every state, those who perform labor or provide materials to a construction project obtain a right to lien the property. In fact, this lien right is even built into the California constitution.
However, every state’s lien laws has complex requirements. A question that is frequently asked is whether an unlicensed contractor has the right to file a construction or mechanics lien.
Of course, the answer to this question varies state-by-state. Further, one must remember that in most states, the fact that a person is unlicensed is not necessarily controlling as licenses are not required in every situation.
As it regards the state of California, the question was discussed in a legal column of PressBanner.com. Gary Redenbacher says:
But what about unlicensed contractors? By law, unlicensed contractors are not entitled to be paid — period — for anything. Even if they do a perfect job and put $300,000 of materials into your home, they will be thrown out of court if they sue to get paid. Since unlicensed contractors cannot turn to the law to be paid, any lien they record is a false lien.
Contracting without a license is a misdemeanor. Recording a false lien in an attempt to get paid might just jump an unlicensed contractor from the frying pan into the fire.
One of the most critical mistakes any contractor can make when filing a construction lien is not being qualified to file one at all. In California, its pretty clear that unlicensed contractors are completely without lien rights. Elsewhere, if you’re performing construction work without a license, you should be extra-cautious before filing a construction lien, as you may not be qualified.
Related posts:
- 7 Habits of Contractors Who Lose Money…and How to Break Them
- Lien Maze for General Contractors – Louisiana
- Important California Lien Forms – FREE
- California Freezes Funds for Public Projects
- 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.
[...] without proper registration or licensing, jeopardize their ability to file a construction lien. This is the case in California, for example, which was discussed in a blog post a few weeks [...]
[...] In California and Washington, the laws against unlicensed contractors are very strict — unlicensed contractors have no recovery whatsoever. This means they cannot file a lien, or a lawsuit, or anything at all. If they did $1,000,000 of work, and a party refuses to pay them, they are completely without a remedy and basically donated their time and money to the construction project. (See previously written post: Can Unlicensed Contractors Lien in California?) [...]