Mechanics Liens in California: What Homeowners Need to Know
A mechanics lien is a legal claim against your property filed by someone who provided labor or materials for a construction project and was not paid. In California, contractors, subcontractors, and material suppliers all have the right to file a mechanics lien under Civil Code Sections 8400–8494.
If you received a preliminary notice or found a lien recorded against your property, this guide explains what it means, what your rights are, and what steps to take.
Who Can File a Mechanics Lien
Any person or company that provided labor, materials, equipment, or services for a work of improvement on your property can file a mechanics lien. This includes general contractors, subcontractors, sub-subcontractors, and material suppliers.
There is one important exception: an unlicensed contractor cannot enforce a mechanics lien through foreclosure. California courts have consistently held that a contractor who was required to be licensed but was not licensed at all times during the project cannot use the lien foreclosure process. The lien may still be recorded, but it is effectively unenforceable. If you suspect the lienholder is unlicensed, verify their license status.
Verify a Contractor's License Now
Preliminary Notices
Before a mechanics lien can be filed, most claimants (except the direct contractor you hired) must serve a preliminary notice within 20 days of first providing labor or materials to your project. This is sometimes called a “20-day notice.”
Receiving a preliminary notice does not mean there is a problem. It is a routine legal step. Subcontractors and suppliers send these notices on nearly every job to preserve their lien rights. Think of it as a heads-up: this company is working on your project and wants to make sure you know they exist in case payment becomes an issue.
If the preliminary notice was not served within the 20-day window, the claimant’s lien rights may be limited to the value of work performed in the 20 days before the notice was actually served. Failure to serve any preliminary notice at all can invalidate the lien entirely for that claimant.
How Homeowners Get Stuck Paying Twice
The most frustrating scenario in construction disputes is paying your general contractor in full, then having a subcontractor or supplier file a lien because the general contractor did not pay them. California law allows this. You can owe money on your property even though you paid every invoice your contractor sent you.
This is why preliminary notices matter. They tell you who is working on your project. If a subcontractor sends you a preliminary notice and later tells you they have not been paid, that is an early warning to stop paying the general contractor until the payment chain is resolved.
It is also why a proper home improvement contract and careful payment practices are so important. Progress payments tied to completed work, combined with lien releases at each payment stage, are your best protection.
Lien Releases
A lien release is a document signed by the contractor, subcontractor, or supplier confirming they have been paid and waiving their lien rights for the amount received. California law defines four types:
- Conditional waiver on progress payment: waives lien rights for a specific payment amount, but only takes effect when the check actually clears.
- Unconditional waiver on progress payment: waives lien rights immediately, regardless of whether the check clears. Use this only after you have confirmed the funds have been received.
- Conditional waiver on final payment: waives all lien rights upon final payment, effective when the check clears.
- Unconditional waiver on final payment: waives all remaining lien rights immediately. This should be the last document exchanged at project completion.
Always collect conditional lien releases with each progress payment. At final payment, collect unconditional releases from every party that sent you a preliminary notice. Do not make final payment until you have all releases in hand.
Lien Recording and Deadlines
A mechanics lien must be recorded with the county recorder after the work of improvement is completed (or after the owner files a Notice of Completion or Notice of Cessation). The specific deadlines are:
- Direct contractors: must record the lien within 90 days after completion of the work of improvement, or within 60 days after the owner files a Notice of Completion.
- All other claimants (subcontractors, suppliers): must record within 90 days after completion, or within 30 days after a Notice of Completion is filed.
After recording the lien, the claimant must file a foreclosure lawsuit within 90 days. If no lawsuit is filed within that window, the lien expires and is unenforceable. The property owner can then petition the court to have it removed from the record.
Notice of Completion
Filing a Notice of Completion with the county recorder is one of the most important steps a homeowner can take. It shortens the lien filing window from 90 days to 60 days for direct contractors and 30 days for everyone else. The notice must be filed within 15 days of the actual completion of the project.
Many homeowners skip this step because they do not know about it. If you are managing a project of any significant size, file the Notice of Completion as soon as the work is done. It significantly reduces your exposure window.
How to Challenge an Invalid Lien
Not every mechanics lien is valid. Common grounds for challenging a lien include:
- The claimant did not serve a preliminary notice (required for subcontractors and suppliers).
- The lien was recorded after the statutory deadline.
- The claimant is an unlicensed contractor who cannot enforce the lien.
- The lien amount is inflated or includes work not performed on your property.
- The foreclosure lawsuit was not filed within 90 days of recording.
California provides a petition process under Civil Code Section 8480 that allows property owners to have an invalid lien removed through the courts. This is called a “petition to release mechanics lien.” If the court finds the lien is invalid, the claimant may be ordered to pay your attorney fees.
For straightforward cases (missed deadlines, no preliminary notice), the petition process is relatively quick. For disputes over the amount owed or quality of work, the process can be more involved.
When to Involve an Attorney
Many lien disputes can be resolved through direct negotiation, especially when the issue is a general contractor who has not passed payments through to subcontractors. But some situations call for legal help:
- A foreclosure lawsuit has been filed against your property.
- Multiple liens from different claimants total more than your remaining budget.
- You need to file a petition to release a lien and the claimant is contesting it.
- You are selling or refinancing and the lien is blocking the transaction.
Construction attorneys in California typically handle lien disputes on an hourly basis. For smaller amounts, small claims court (up to $12,500 for individuals) may be a more cost-effective option.
Verify a Contractor's License Now
Before taking any action on a mechanics lien, verify the contractor’s license status. A licensed contractor in good standing has more legal leverage, but also more to lose. An unlicensed contractor may not be able to enforce the lien at all. See our license verification guide for step-by-step instructions, and our bond and insurance guide to understand what financial protections may apply.