Q. What is the purpose of a Preliminary Notice?

A. A Preliminary Notice establishes your right to file a Mechanic's Lien against a property if you

have provided or will provide labor, materials, equipment, or services that will improve real

property such as home or other buildings.

 

Q. What is a California Notice of Completion and why is it significant?

A. A California Notice of Completion is a voluntary document, signed by a property owner or HOA

that is recorded with the county recorder to shorten the time for potential claimants such as prime

contractors, subcontractors, and suppliers to file a mechanics lien or stop payment notice against

a property. Without a Notice of Completion, claimants have 90 days to file a claim, with a notice of

completion that period is reduced to 60 days for prime contractors and 30 days for subcontractors

and suppliers. To be effective, the notice must be recorded within 15 days of the project's completion,

though minor inaccuracies in the completion date may be allowed if the actual completion was within

the 15-day period.

 

Q. When should a Preliminary Notice be served?

A. Preferably on the date work starts or materials are provided, or as soon thereafter as possible.

 

Q. What usually happens after a Lien is recorded?

A. One of four things will normally happen;

1. The amount owing is paid;

2. The amount is compromised and paid,

3. The lien is extended, or

4. Within 90 days, you start the foreclosure of the property that was improved.

 

Q. We have a court judgment against a subcontractor. Can you help us collect

the amount owed?

A. Pacific Coast Lien Services does not collect court judgments, but highly

recommends that you contact Pacific Rim Commercial Collections to collect both

judgments and other claims against subcontractors and other debtors.

 

Q. Does your company provide legal advice?

A. No. We are not a law firm and do not provide legal advice.

 

Q. Is there a membership fee to use your lien service?

A. Absolutely not.

 

Q. Generally, how long does it take to process a preliminary notice or mechanic’s

lien?

A. Most are processed within 5 to 7 days of our receiving the information we need.

 

Q. Some mechanics lien services require a minimum number of preliminary

notices, to be requested by contractors each month. Do you have any

minimums?

A. No. We appreciate every client and have no minimums.

 

Q. Is an unlicensed contractor entitled to file a mechanic’s lien in California?

A. If the work performed required a contractor’s license ($500 or more), and the

contractor had no license, he or she cannot file a mechanic’s lien.

 

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