Preliminary Notices: A Necessity for Mechanics Liens

Whether you’re a homeowner wanting to remodel your home, a subcontractor hired by a General for a job, or a vendor providing materials for a specific job, mechanics liens should be something to consider before starting a project.

Mechanics liens are a big deal—and for good reason. As defined by the California State License Board, “a mechanics lien is a ‘hold’ against your property, filed by an unpaid contractor, subcontractor, ...or material supplier, and is recorded with the county recorder's office. If unpaid, it allows a foreclosure action, forcing the sale of the property in lieu of compensation.” 

For a homeowner, this means that in the event a mechanics lien is filed against your home, the lien will not be lifted until the unpaid party (whether it be a contractor or a vendor) is paid. If left unpaid, the home could potentially be foreclosed upon so the unpaid parties can receive their payment. 

While this might sound intimidating, rest assured that mechanics liens placed by subcontractors and vendors have to be valid before they can be acted upon. For this lien to be valid, a Preliminary Notice must be given to the homeowner either before the project begins or within 20 days after the project starts. Always check with the general contractor what constitutes the start date for the project, as that should be included in the project contract. 

If a project begins without the Preliminary Notice being delivered, then the subcontractor and/or the supplier is only entitled to the amount owed 20 days before the notice was delivered and the days thereafter. 

To put it in action, the example below shows how big of a difference giving the Preliminary Notice can make.

Note that the general contractor is NOT obligated to deliver a Preliminary Notice to the homeowner, as the contract for the project is already required to contain a Mechanics Lien Warning. The responsibility of delivering the Preliminary Notice is ultimately up to the subcontractors and vendors.  

Want to know more about Mechanics Liens and how they work? Visit the Contractor State License Board website for more mechanics lien information, including preventative measures and what to do in the event a lien is filed against the homeowner.