A Mechanic's Lien is a document that is recorded at the County Recorder's Office. It provides a lien for the person who recorded that lien. In other words, it puts a "hold" on property until the person is paid. That person then has the right to foreclose on the property that has been liened.
Sometimes it is unfortunate that the homeowners are the ones who are responsible to pay the lien. The reason it can be unfortunate is because there are instances where the homeowner can pay the prime contractor in full for a job and the prime contractor does not pay the subcontractor in full. If the subcontractor places a lien on the property, the homeowner can ultimately be responsible.
However, Mechanic's Liens, Stop Notices and Bonds are documents that should not be taken lightly. For instance, material suppliers are not usually entitled to a lien since the materials have to be incorporated into the structure (installed) by them in order to have the lien rights. Mechanic's Liens have been discussed and litigated many times through California law. California law is very different than other state's laws and one should seek the aid and advice of a competent California construction attorney.
Wednesday, November 25, 2009
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