Monday, November 16, 2009

Lien Law Online eLert for 11/13/2009 - California

November 13, 2009

Upcoming Changes in California Lien Law

Several subscribers have sent inquiries regarding changes in California's lien law which were recently passed by the CA legislature. In fact, changes are forthcoming, but they will not take effect until January 1, 2011.

There will be two changes in the lien law statutes in California. Under the first change, after January 2011, lien claimants will need to serve any mechanic's lien they record on the project owner along with a Notice of Mechanic's Lien to perfect their lien rights. The specific terms to be used in the Notice of Mechanic's Lien will be set forth in a revised Section 3084 of the California Civil Code. The specific wording, which must be used for the Notice of Mechanic's Lien, will be updated on the website prior to the effective date.

Under the second change, a lien claimant will need to record a Notice of Lis Pendens with the County Recorder's Office when filing a Lien Forclosure action after January 1, 2011. Specifically, the Notice of Lis Pendens will need to be recorded within 20 days after filing the Lien Foreclosure action. This change will be accomplished through a revised Section 3084 of the California Civil Code 3146.

The foregoing changes will be incorporated into the California chapter when we get closer to the changes going into effect.

Deborah S. Ballati, Esquire, Contributing Author
B. Scott Douglass, Esquire, Contributing Author
Farella Braun & Martel, LLP

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