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Relevant Documents and pdfs for California Preliminary 20 Day notice for Private and Public works:
What is a Mechanics Lien?
A contractor’s constitutional right to get paid!
History Of Revisions
Anyone who furnishes labor, service, equipment or material (L.S.E.M.) for use in and which is used in a work of improvement
Claims for Fringe Trust Fund Benefits: Betancourt v. Storke Housing Investors (2003) 31 Cal.4th 1157
Persons NOT Entitled To Liens:
REMINDER: Lender MUST be served with preliminary notice!
Who MUST Serve A Preliminary Notice?
Who must be served?
Notice given by mail shall be given by:
A) Registered mail
B) Certified Mail
C) Express Mail
D) Overnight Delivery by an express service carrier: Civil Code 8110
If notice given by mail, it is complete when deposited in the mail: Civil Code 8116(b)
5. Proof of notice shall be by a proof of service declaration that states:
D If by mail, accompanied by:
Documentation provided by the United States Postal Service showing that payment was made to mail the notice using registered, certified or express mail
A return receipt, delivery confirmation, signature confirmation, or other proof of delivery or attempted delivery provided by the United States Postal Service showing the date of delivery and to whom delivered, or in the event of non-delivery by the returned envelope.
Documentation provided by an express mail service showing that payment was made to send the notice using an overnight delivery service. Civil Code 8118
Finding The Lender
A Lender Is Still Necessary
Required Information In Contract
Labor And Services
Estimate For Total Price
Figure Must Be Based On A Rational Analysis
Rental Equipment, Inc. v. McDaniel Builders, Inc. (2001) 91 Cal. App. 4th 445: Preliminary Notice estimates (2) totaled $20,000.00; lien amount: $159,898.00.
“Estimate” means an approximate computation of the probable cost of a piece of work made by a person undertaking to do the work; Statute requires “a derived figure, arrived at by rational analysis”; “The estimate called for can be in compliance with the statute even though it badly misses the mark with reference to the total charges as finally tallied.” Can’t be a “guess, conjecture, or surmise.”
When To Serve Preliminary Notice?
Within 20 days of starting work – Proof of Notice Declaration
If you’re working in the construction industry, then preliminary notice requirements are something you should pay attention to. In California, they changed in July of 2012, so you need to find actual information about them.
In this state, in order to retain the ability to file a valid mechanics lien, you need to send a preliminary notice. Property owners, general contractors, and lenders are usually the ones receiving it. They use it to paint a clear picture of the parties that are working on the project.
Preliminary notices have a deadline in California, but the state is strict in the required content.
The state allows you to file a mechanics lien on a project if you provide labor or materials to it. In some cases, the law specifies that some parties must send preliminary notice to rightfully preserve the mechanics lien.
California’s requirements for preliminary notice are not very different from those of other states. Their role is to inform a property owner about a claimant’s right to file a mechanics lien against the property in case there is no payment. A preliminary notice in California is meant to benefit the general contractor, property owner and top project members.
What Does a Preliminary Notice Include in California?
In the state of California, certain things should be included in preliminary notices, as the law requires them. They are:
When Should It Be Sent?
A preliminary notice should be sent within 20 days of the first material or labor furnishing.
Therefore, in case you send it after 20 days, you should know that it only protects lien rights for the previous 20 days.
How Do You Send It?
Preliminary notices can be sent via overnight delivery, express mail or registered mail. Make sure you have proof about mailing your notice.
The “certified mail” of the United States Postal Service is the most cost-effective way, as it costs under $5 and you receive a tracking number as well.
California has very good laws when it comes to preliminary notices. However, make sure you do your research before you send one.