A mechanics lien form is a type of form used when a supplier or worker has only obtained payment after placing a lien for a debt conducted on a specific property. A lien is basically a legal claim to a property to cover a receivable debt made with the property as security.
What is a mechanics lien form?
If you or your company has supplied materials, labor or both to a property, you can use a mechanic’s lien template. The property cannot get transferred, refinanced or sold when you and the other party have agreed on the contents of the document, until you have settled the lien. So, this makes sure your company that you will obtain payment for the materials and labor supplied.
You have to give information regarding both parties in order to get a mechanics lien form. Also, you have to provide the materials or services you supplied. Since the company claiming the secured interest, you have to provide the following information;
- Your name
- The name of your company
- Your license number
- Your business address
- The county and state where you made the lien
Additionally, your company should also explain the materials or services you supplied. For your company, the provision of this information and its filing with the recorder’s office becomes an assurance. It makes sure that in case the other party doesn’t fulfill their obligations, you will get covered for all of your materials and labor.
The elements of the form:
The mechanics lien form should include the following elements;
The parties involved
Here, you include the;
- Lienor (you) complete name, address, and contact details
- Your lawyer complete name, address, and contact information
- The property owner complete name, address, and contact information
Information of the supplied materials and labor
In this section, you will stipulate all of the contract’s details. You must mention the;
- Descriptions of the labor performed
- The materials provided
- Payment details
- The dates when you gave materials of labor
A description of the property involved
The description you provide should be as specific as possible. It should contain the property’s address and the construction specifications such as material and size. In case, the involved property is vehicle then specify the make, model, color license plate number, and year.
Location details
The place at which your company rendered services or supplied the materials, mention it. Also, if you worked in a “private residence,” an “industrial lot” or somewhere else, describe the building type.
Signatures of the parties involved
When the involved parties have affixed their signatures on the form, it acts as a legal document. In the presence of notary public, the signing process should take place.
What are the different types of Mechanic’s lien?
People may think that there are different variations of Mechanic’s Liens. While, some may think that Mechanic’s Lien is a general term. However, there are more specific versions which include the;
- Supplier’s lien
- Materialman’s lien
- Designer’s lien
- Artisan’s lien
How to file a mechanic’s lien in California?
The services you have rendered or the materials you have supplied, either in improvement, renovation or construction, you as a company owner want to get paid for them. If you are a contractor in California, here are the steps that you should follow while filing a lien;
Determine your eligibility
If you contract with the owner of the property, subcontractor, prime contractor or an agent of any of these, you can then file a mechanics lien California.
Send a 20-day preliminary notice
A 20-day preliminary notice should include the language that is required by your statute. It should contain proof of delivery. When you first furnished materials, services or labor, you must send this notice within 20 days. Furthermore, for the materials, services, or labor furnished to the project within 20 days of the delivery, sending the notice late only secures your right to lien.
Prepare the mechanic’s lien form
In California, the laws are very strict on this aspect. You must follow all of the requirements of the statute. Your form must include the following;
- A statement of your demand
- Name of the property owner
- A statement that determines the purpose of the lien
- The hiring person or company name
- A legal property description
- A proof of service affidavit
- A statutory notice statement
- A verification
To the owner of the property, deliver the mechanic’s lien
After preparing your document, you have to make a copy, sign it, and have it verified. After that, to the owner of property deliver the document. You should send this copy via registered mail. You also have to keep the receipt of the mailing.
After drafting, sign an affidavit and attests and then send one copy of this form to the property owner through registered mail. Upon filing, attach the affidavit to the lien.
File the lien with the recorder’s office
Along with the affidavit, you have to file the original copy of the form with the Recorder’s Office of the county where you worked on the property. You must record your mechanic’s lien in California within;
- 90 days from while your project was whether abandoned or accomplished
- When you have filed a Notice of Abandonment, Notice of Cessation or Notice of Completion, 60 days from them.
Continue with your collection attempts
You can still make collection efforts with the property owner or any other parties involved as soon as you have your lien filed. You can search for whether or not the lien has made an impact on their willingness to pay.
You must file a cancellation for the lien if they decide to pay. You may have to escalate your action to get paid in case the lien has no effect. You have to begin preparing for a lawsuit to enforce the lien. You should also check roofing contract templates.
The purpose of a mechanic’s lien:
The mechanic’s lien is designed to protect contractors, subcontractors, and suppliers financially when they give services or materials for a hiring party. You can prevent the owner of the property from selling it by filing and securing a legal claim against a property. By obstructing the land title from being clear, the Mechanic’s Lien prevents a property sale. Moreover, contractors, subcontractors, and suppliers for preventative protection make use of an independent contractor agreement or service agreement to set the terms.
Conclusion:
In conclusion, a mechanics lien form is an effective tool used when you or your company has supplied materials, labor or both to a property. This document is used by a supplier or subcontractor who has not received payment for materials or services rendered. It is used to place a mechanic’s lien on a property.
Faqs (Frequently Asked Questions)
You have to follow three steps for putting a mechanic’s lien onto a house or property;
1- Fill out a lien that is relevant to state requirements
2- Keep track of the lien with the county
3- Give notice to the property owner
When a mechanic’s lien is filed, there is a timeframe within which the lien has to be enforced on the basis of what state you’re in. Typically, when your action is pending the lien will stay on the books. When you win the lien then makes sure you will show gratitude to having security of the property.
