Quite often a contractor, laborer, or design professional, among others, records a mechanic’s lien against your property for work the contractor claims they completed to the property but remains, at least partially, unpaid.
A Stale Mechanic’s Lien is Unenforceable
If a mechanic’s lien is recorded against your California property, the lien claimant (i.e. the contractor), has 90 days to file a lawsuit to foreclose on the mechanic’s lien. If a lien claimant records a mechanic’s lien against your property, and 90 days goes by and they have not initiated a lawsuit to foreclose on the mechanic’s lien, the mechanic’s lien is expired and unenforceable. [Cal. Civ. Code § 8460]. There are minor exceptions to this rule, but in most cases no exception applies.
Petition to Release Mechanic’s Lien
Even though a mechanic’s lien is unenforceable after the expiration of the 90-day, title companies will not close an escrow or insure a refinance or purchase of the property, without first obtaining a court order releasing the lien. Fortunately there is a fairly quick procedure to have the lien permanently released and removed. The property owner files some simple papers with the court, and obtains a hearing generally within 30 days of the date that the documents are first filed with the court. This procedure is known as a Petition to Release Mechanic’s Lien, and in most cases the lien claimant does not have a defense. And quite often, the lien claimant does not even respond to the Petition, nor does the lien claimant appear in court at the hearing. If the property owner prevails on the Petition, in addition to obtaining a judgment for the release of the lien, the property owner can also recover a judgment for the amount of their reasonable attorneys fees.
The procedure to file and prosecute a petition to release a mechanic’s lien is a very simple procedure that can be obtained with relative ease and quickness with proper attorney representation.
I regularly represent clients in the East Bay, California, in Oakland, California, and in Walnut Creek, California, regarding Mechanic’s Liens. If you have questions, or need representation by a California real estate attorney involving a mechanic’s lien case, please feel free to contact me to discuss your case or to arrange for a consultation. I can be reached at (510) 465-0025 or (925) 708-3306.