Updated Nov 2025 | Private Projects: CA Civ § 8200–8216, 8460 – 8470
Payment delays and non-payment are still common issues in California construction. Mechanics liens remain a powerful legal tool to help contractors, subcontractors, and suppliers secure payment for work performed. This article explains what steps are required to make a lien valid and enforceable.
What Is a Mechanics Lien in California?
A mechanics lien is a legal tool for contractors, subcontractors, and material suppliers to recover payment for their work on a construction project. It functions by placing a “hold” or encumbrance on the project property as security for the unpaid amount. If the debt remains unpaid, the claimant can enforce the mechanics lien, which can lead to a court-ordered foreclosure and sale of the property to satisfy the debt.
The mechanics lien process in California provides ample notice and time for the property owner to resolve the payment issue before it escalates to foreclosure. However, the right to file a lien comes with strict responsibilities. A construction professional can easily lose their lien rights if they fail to meet all statutory requirements, such as serving a California 20-day preliminary notice as required by law.
How Do Mechanics Liens Work to Secure Payment?
A mechanics lien places a legal “hold” on the property where the work or supplies were provided. Once a mechanics lien has been recorded, if the property owner fails to resolve the unpaid debt within the 90-day period provided by law, the claimant can file a lawsuit to enforce the lien. A court can then order the property to be foreclosed upon or sold to pay the lien claimants.
The following parties generally have lien rights in California:
- Direct contractors (preliminary notice is not required except for residential projects with construction lender financing, where 20-day preliminary notice is mandatory)
- Subcontractors and sub-subcontractors
- Material suppliers
- Equipment lessors
- Laborers (preliminary notice not required)
- Design professionals (architects, engineers, surveyors)
Can Subcontractors and Sub-subcontractors File a Mechanics Lien in California?
Yes, as long as they serve a 20-day preliminary notice as required by law.
Can an Unlicensed Contractor File a Mechanics Lien in California?
Generally no, but there are limited exceptions. As of January 1, 2025, Assembly Bill 2622 allows unlicensed contractors to perform work up to $1,000 without requiring a license, provided the work does not require a building permit and does not involve hiring employees. For work above this threshold or requiring permits, California Business and Professions Code § 7031 prevents unlicensed contractors from bringing any action for compensation, which effectively bars them from filing mechanics liens.
Exception for Small Projects Under $1,000
Under Assembly Bill 2622 (effective January 1, 2025), contractors may perform work valued at $1,000 or less without a license if:
- No building permit is required
- No employees are hired for the project
- Work complies with local building codes
Contractors performing such work may have mechanics lien rights, but should consult legal counsel to confirm eligibility in their specific situation.
Yes, a contract is generally required to establish lien rights. While the contract does not always need to be in writing, it is extremely difficult to prove the existence and terms of an oral agreement. A written contract is always the best practice.
Can You File a Mechanics Lien Without a Preliminary Notice in California?
Material suppliers and subcontractors are required to serve a valid 20-day preliminary notice. You lose your right to file a lien if you fail to do so. Direct contractors are generally exempt from this requirement because their direct contract with the owner serves a similar notification purpose.
Important Exception for General Contractors: General contractors working on residential projects financed by construction lenders must serve 20-day preliminary notice regardless of their direct contract with the owner. This requirement ensures all parties in the financing chain receive proper notification.
What Are the Deadlines for Recording a Mechanics Lien?
For Material Suppliers and Subcontractors
They must record a claim of lien after they have stopped providing work but no later than:
- 90 days after completion of the entire work of improvement, OR
- 30 days after the owner records a Notice of Completion or Cessation
The claimant must use whichever deadline is earlier (Cal. Civ. Code § 8414). Anyone who served a preliminary notice should receive a copy of any Notice of Completion within 10 days of its recording (Cal. Civ. Code § 8190).
For Direct Contractors
A direct contractor must record a claim of lien after they complete their contract work and within 90 days after the completion of the entire work of improvement (Cal. Civ. Code § 8412).
If a Notice of Completion or Notice of Cessation is recorded, the deadline is shortened to 60 days from the date the owner records that notice.
What Does Verifying the Status of My Project Mean?
Knowing the date of “completion” is critical because it starts the clock for your lien-filing deadline. The definition of completion can include several scenarios, such as the owner’s occupation of the property or the cessation of labor for a continuous period (Cal. Civ. Code § 8180). You should communicate with the party that hired you and check the county recorder’s office for any recorded Notice of Completion or Cessation.
NOTE: Before filing a mechanics lien, subcontractors and suppliers must serve a 20-day preliminary notice within 20 days of first furnishing labor or materials. A late notice only covers work furnished in the 20 days prior to serving the notice.
If you have met the notice requirements and remain unpaid after your work is complete, you can record a mechanics lien. While not required, sending a “Notice of Intent to Lien” beforehand is a good practice that may prompt payment without further legal action.
Step 1: Prepare Your Mechanics Lien Document
The claim must be a written document, signed and verified by you (the claimant). Per Cal. Civ. Code § 8416, it must include:
- The claimant’s demand (the amount owed) after deducting all just credits and offsets.
- The name of the owner or reputed owner.
- A general statement of the kind of work you provided
- The name of the person who hired you.
- A description of the project site sufficient for identification.
- Your address.
- The following “NOTICE OF MECHANICS LIEN,” printed in at least 10-point boldface type:
NOTICE OF MECHANICS LIEN
ATTENTION!
Upon the recording of the enclosed MECHANICS LIEN with the county recorder’s office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.
The party identified in the enclosed mechanics lien may have provided labor or materials for improvements to your property and may not have been paid for these items. You are receiving this notice because it is a required step in filing a mechanics lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanics lien is released.
BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANICS LIENS GO TO THE CONTRACTORS’ STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov.
- Proof of service showing that you served a copy of the lien on the owner.
Step 2: Serve a Copy of the Lien on the Owner
You must serve a copy of the completed and signed mechanics lien on the property owner. This is a mandatory step. You must then complete a proof of service affidavit and attach it to the lien document before recording it.
The lien must be served on the owner by registered mail, certified mail, or first-class mail. You must obtain a certificate of mailing from the post office as proof of service. Failure to serve the lien, including the required statutory notice, will make your lien unenforceable (Cal. Civ. Code § 8416(c)-(e)).
Step 3: Record the Lien With the County Recorder
After serving the owner and completing the proof of service affidavit, you must record the lien in the county recorder’s office where the project is located.
Recording fees and additional charges for filing a mechanics lien vary by county and are subject to change. Check with the appropriate county recorder for the most current fee schedule.
What Happens If There Is an Error in the Mechanics Lien?
Erroneous information regarding the amount owed or the description of the work or site does not automatically invalidate the lien. However, a lien may be forfeited or invalidated if:
- The claim was made with an intent to defraud (Cal. Civ. Code § 8422).
- The claimant willfully included work or materials not actually furnished to the property.
- The errors are so significant that an innocent third party purchasing the property could not be expected to investigate the lien further.
How Do I Enforce a Mechanics Lien After Filing?
If you remain unpaid after recording a valid mechanics lien, you must take action to enforce it. This means filing a lawsuit to foreclose on the lien.
You have 90 days from the date the mechanics lien was recorded to file a foreclosure lawsuit (Cal. Civ. Code § 8460). If you miss this deadline, your lien expires and becomes unenforceable.
Within 20 days of filing the lawsuit, you must also record a “notice of pendency of action” (also known as a lis pendens) with the county recorder (Cal. Civ. Code § 8461). This notice informs the public that the property is subject to a lawsuit. The court may dismiss the action if it is not brought to trial within two years (Cal. Civ. Code § 8468).
Can an Owner Contest a Mechanics Lien?
Yes. An owner can challenge the validity of a lien in court during the foreclosure lawsuit. If the claimant failed to follow the strict deadlines, did not serve the required notices, or included fraudulent information, the court may declare the lien invalid.
An owner can also file a petition with the court to release the property from the lien if they believe it is improper (Cal. Civ. Code § 8480).
What Happens If There Are Multiple Liens on a Property?
Multiple parties can file a valid mechanics lien on the same property. California mechanics liens generally have priority over other encumbrances like mortgages or deeds of trust if those other encumbrances were recorded after the work of improvement began.
Among different mechanics lien claimants, all liens are of the same priority, regardless of when each claimant started work or recorded their lien (Cal. Civ. Code § 8450).
If the proceeds from a foreclosure sale are not enough to pay all lien claimants in full, they share the available funds on a pro-rata basis.