More on the Mechanic's Liens and the Preliminary Notice

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The identity of the construction lender and property owner may also be obtained from the contract between the owner and original contractor. The law requires that every contract entered into between a property owner and an original contractor must provide space for the owner to enter his or her name and address of residence and place of business, if any, and the name and address of any construction lender. The original contractor is also required to make available the name and address of residence of the owner and construction lender to any person seeking to serve a preliminary notice.

The method of service and form of establishing proof of service of the preliminary notice are set out in the California Civil Code and must be strictly followed. The preliminary notice may be personally served or served by certified or registered mail, return receipt requested. Service by certified or registered mail is deemed completed when it is placed in the mail. The green proof of receipt must be maintained with the file copy of the preliminary notice to establish proof of proper service.

Timing of the service of the twenty-day preliminary notice is critical to the validity of an effective preliminary notice. In order to apply to all labor and materials provided by the lien claimant, the preliminary notice must be served within 20 days of the first date that labor and materials are provided. The law provides that a preliminary notice will be effective as to all labor and materials provided within 20 days before the date of service and thereafter. It is important that if all labor and materials are to be included within a later mechanic's lien claim, the preliminary notice must be served within 20 days of the first date that labor and materials are supplied.

A special provision of the law applies to engineers, architects and surveyors who have provided services before construction of the work of improvement has actually started on the ground. A certificated architect, registered engineer, or licensed land surveyor who has furnished services for the design of the work of improvement and who gives a preliminary notice not later than 20 days after the work of improvement has commenced shall be deemed to have complied with the requirements for serving the preliminary notice with respect to architectural, engineering, or surveying services furnished, or to be furnished. Future articles will discuss other aspects of the mechanic’s lien.
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