ARTICLE
XIV LABOR RELATIONS
§ 3 Mechanics Liens
CIVIL CODE
TITLE 14 LIEN
CHAPTER 8 DESIGN PROFESSIONALS LIENS
3081.1
Definition
3081.2 Lien on Real Property for Which Work of Improvement
is Planned to be Constructed
3081.3 Conditions to Lien; Preliminary Notice; Notice of Lien
3081.4 Expiration of Lien; Release
3081.5 Enforcement
3081.6 Mechanics Lien Not Affected
3081.7 Time for Recording
3081.8 Other Remedies Not Affected
3081.9 Priorities; Construction Loans
3081.10 Single Family Dwellings
TITLE 15 WORKS OF IMPROVEMENT
CHAPTER 1 GENERAL DEFINITIONS
3082 Chapter
Governs Construction of Title
3083 “Bonded Stop Notice”
3084 “Claim of Lien”
3085 “Claimant”
3086 “Completion”
3087 “Construction Lender”
3088 “Contract”
3089 “Laborer”
3090 “Materialman”
3092 “Notice of Cessation”
3093 “Notice of Completion”
3094 “Notice of Nonresponsibility”
3095 “Original Contractor”
3096 “Payment Bond”
3097 “Preliminary Twenty-Day Notice (Private Work)”
3097.1 Proof of Service of Preliminary Notice
3098 “Preliminary Twenty-Day Notice (Public Work)”
3099 “Public Entity”
3100 “Public Work”
3101 “Site”
3102 “Site Improvement”
3103 Elements of Stop Notice; Service
3104 “Subcontractor”
3105 “Subdivision”
3106 “Work of Improvement”
CHAPTER
2 MECHANICS LIENS
ARTICLE 1 APPLICATION OF CHAPTER
3109 Application
ARTICLE 2 WHO IS ENTITLED TO LIEN
3110 Person Who Have Lien Rights
3111 Fringe Benefit Trusts
3111.5 Written Statement from Fringe Benefit Trust to Subcontractor
3112 Persons Who Furnish Site Improvements Have Lien Rights
ARTICLE 3 CONDITIONS TO ENFORCING A
LIEN
3114 Preliminary Twenty-Day Notice
3115 Original Contractor: Sixty Days After Notice of Completion
3116 Claimant Other Than Original Contractor: Thirty Days
After Notice of Completion
3117 Completion of Separate Original Contract
3118 Willful Inclusion of Items not Furnished; Forfeiture
ARTICLE
4 AMOUNT OF LIEN
3123 Amount of Lien; Charges
3124 Services and Materials not Included in Original Contract
ARTICLE
5 PROPERTY SUBJECT TO LIEN
3128 Liens Attach to Land Including Space for Convenient Use
and Occupations
3129 Notice of Nonresponsibility Protects Against Liens Suffered
by Tenants
3130 Lien Against two or More Buildings should Designate Amount
Due on Each
3131 Residential Units Considered Separate Works of Improvement
ARTICLE
6 PRIORITIES
3134 Claim of Lien Takes Priority from Commencement of Work
of Improvement
3135 Separate Contract for Site Improvements (“Offsite
Improvements”)
3136 Optional Advances by Construction Lender
3137 Priority of Liens for Site Improvements Over Deed of
Trust Securing Construction Loan
3138 Payment Bond to Secure Priority of Trust Deed
3139 Payment Bond to Secure Priority of Trust Deed Over Liens
for Site Improvements
3140 Amount of Lien After Deducting Credits and Offsets
ARTICLE 7 ENFORCEMENT OF LIEN
3143 Release Bond
3144 Time for Filing Foreclosure Suit
3144.5 Notice of Recording Release Bond; Statute of Limitations
on Bond
3145 Notice of Agreement of Credit or Extension of the Lien;
Recording
3146 Notice of Pendency of Action
3147 Discretionary Two-Year Dismissal
3148 Effect of Dismissal or Judgment
3149 Joinder and Consolidation of Foreclosure Actions
3150 Recording Costs
3151 Deficiency Judgment
3152 Lien does not Affect the Right to Maintain a Personal
Action or Issuance of a Writ of Attachment
3153 Contractor Shall Defend Owner Against Mechanics Lien
Actions; Liability of Performance Bond Surety
3154 Petition for Decree to Release Lien
CHAPTER 3 STOP NOTICES FOR PRIVATE WORKS OF IMPROVEMENT
ARTICLE 1 APPLICATION OF CHAPTER
3156 Chapter does not Apply to Public Works
ARTICLE 2 WHO IS ENTITLED TO SERVE A STOP NOTICE AND BONDED
STOP NOTICE
3158 Claimants Other Than Original Contractor; Written Demand
for Stop Notice; Forfeiture of Mechanics Lien Right
3159 Stop Notice to Construction Lender; Payment Bond; Net
Amount of Stop Notice
ARTICLE 3 CONDITIONS TO VALID SERVICE OF STOP NOTICE AND BONDED
STOP NOTICE
3160 Preliminary Twenty-Day Notice; Time for Service of Stop
Notice
ARTICLE 4 EFFECT OF STOP NOTICE AND BONDED STOP NOTICE
3161 Duty of Owner to Withhold; Payment Bond
3162 Duty of Construction Lender to Withhold; Payment Bond
3163 Objection to Sufficiency of Sureties on Stop Notice Bond
ARTICLE
5 PRIORITIES
3166 Stop Notice Takes Priority Over Assignment of Construction
Loan Funds
3167 Pro Rata Distribution
3168 Willfully False Stop Notice; Forfeiture
ARTICLE
6 RELEASE OF STOP NOTICE OR BONDED STOP NOTICE
3171 Release Bond
ARTICLE
7
ENFORCEMENT OF RIGHTS ARISING FROM STOP NOTICE AND BONDED
STOP NOTICE
3172 Action to Enforce Stop Notice Claim: Commencement; Five-Day
Notice of Commencement
3173 Discretionary Two-Year Dismissal
3174 Effect of Dismissal or Judgment
3175 Joinder and Consolidation; Impleader
3176 Attorneys Fees to Prevailing Party
3176.5 Interest on Stop Notice Claim
CHAPTER 4 STOP NOTICE FOR PUBLIC WORK
ARTICLE 1 APPLICATION OF CHAPTER
3179 Chapter Applies Only to Public Work
ARTICLE 2 WHO IS ENTITLED TO SERVE A STOP NOTICE
3181 Authorized Claimants
ARTICLE 3 CONDITIONS TO SERVICE OF
STOP NOTICE
3183 Preliminary Twenty-Day Notice (Public Work)
3184 Time for Service of Stop Notice
3185 Notice of Completion; Acceptance of Completion; Public
Agency to Notify Stop Notice Claimants
3186 Duty to Withhold
3187 Payments to Original Contractor
ARTICLE
4 PRIORITIES
3190 Claims Paid Pro Rata
3191 Recovery from Payment Bond Surety
3192 False Stop Notice; Forfeiture
3193 Stop Notice Takes Priority Over Assignments and Garnishments
ARTICLE
5 RELEASE OF STOP NOTICE
3196 Release Bond
3197 Summary Adjudication of Stop Notice Claim
3198 Contractor’s Affidavit
3199 Service of Affidavit
3200 Counter-Affidavit
3201 Action for Declaratory Relief; Hearing in Fifteen Days
3202 Burden of Proof; Evidence
3203 Release Order
3204 Jury Trial
3205 Determination Not Res Judicata
ARTICLE 6 ENFORCEMENT OF RIGHTS ARISING
FROM STOP NOTICE
3210 Statute of Limitations; Commencement of Action
3211 Five-Day Notice of Commencement
3212 Discretionary Two-Year Dismissal
3213 Dismissal; Judgment
3214 Joinder; Consolidation; Impleader
CHAPTER 5 GENERAL PROVISIONS RELATING TO BONDS
ARTICLE 1 CONSTRUCTION OF AND TERMS
AND CONDITIONS OF BONDS
3225 No Exoneration or Release by Changes or Rescission
3226 Bonds Construed Against Surety; Conditions of Recovery
3227 Written Notice to Surety
CHAPTER 6 PAYMENT BOND FOR PRIVATE
WORKS
ARTICLE 1 PROVISION FOR AND EFFECT OF FILING CONTRACT AND
PAYMENT BOND
3235 Recording Payment Bond Before Work has Commenced; Restriction
of Recovery
3236 Limits to Owner’s Liability
3237 Acceptance by Lending Institution of Payment Bond
ARTICLE 2 CONDITIONS TO ACTION ON PAYMENT BOND
3239 Recording Payment Bond; Statute of Limitations
3240 Limitations
3242 Enforcement of Claim Upon Payment Bond (Private Work)
CHAPTER 7 PAYMENT BOND FOR PUBLIC WORKS
3247 Payment Bond Requirement
3248 Contents of Payment Bond; Amount
3249 Suit Against Surety; Six-Month Statute of Limitations
3250 Action on Payment Bond; Attorneys Fees
3251 Payments to Original Contractor
3252 Condition Precedent; Ninety-Day Preliminary Bond Notice
3253 Delivery of Notice to Surety and Bond Principal
CHAPTER
8 MISCELLANEOUS PROVISIONS
3258 Recording Documents Required by this Chapter
3259 Rules of Practice
3260 Retention Proceeds and Payments
3260.1 Prompt Payment of Progress Payments to Contractor;
Good Faith Dispute
3261 Mistakes or Errors in Claims of Lien
3262 Impairment of Claims of Lien; Forms of Release; Accord
and Satisfaction
3262.5 Prompt Payment of Progress Payments to Subcontractors;
Good Faith Disputes; Penalties; Attorneys Fees
3263 Prevention of Performance; Exoneration of Sureties
3264 No Equitable Rights Against Construction Funds; Exceptions
3265 Claims Requirements of Government Code Inapplicable to
Stop Notice Action
3266 Oil and Gas Lien Act; Streets and Highways Code
3267 Limitation of Claims Against Payment Bond
TITLE 16 GENERAL PROVISIONS
3268 Waiver
CALIFORNIA CONSTITUTION
ARTICLE XIV LABOR RELATIONS
§ 3 Mechanics Liens
Mechanics, persons furnishing materials, artisans, and laborers
of every class, shall have a lien upon the property upon which
they have bestowed labor or furnished material for the value
of such labor done and material furnished; and the Legislature
shall provide, by law, for the speedy and efficient enforcement
of such liens.
CIVIL CODE
TITLE 14 LIEN
CHAPTER 8 DESIGN PROFESSIONALS LIENS
3081.1 Definition
For purposes of this chapter, “design professional”
means any certificated architect, registered professional
engineer, or licensed land surveyor who furnishes services
pursuant to a written contract with a landowner for the design,
engineering, or planning of a work of improvement. Except
as otherwise expressly provided, the definition in this section
does not apply to, or limit or expand the meaning of, provisions
of law other than this chapter.
3081.2
Lien on Real Property for Which Work of Improvement is Planned
to be Constructed
A
design professional shall, from the date of recordation pursuant
to Section 3081.3, have a lien upon the real property for
which the work of improvement is planned to be constructed,
notwithstanding the absence of commencement of actual construction
of the planned work of improvement, if the landowner contracted
for the design professional’s services and is also the
owner of the real property at the time of recordation of the
lien. The lien of the design professional shall be for the
amount of the design professional’s fee for any services
rendered prior to commencement of the work of improvement
or the reasonable value of those services, whichever is less.
The amount of the lien shall be reduced by the amount of any
deposit or prior payments, as specified by a written contract
entered into by the design professional and by the landowner
or his or her agent. However, no lien shall arise pursuant
to this chapter, and a design professional may not record
a notice of lien pursuant to subdivision (c) of Section 3081.3,
unless a building permit or other governmental approval in
furtherance of the work of improvement has been obtained in
connection with or utilizing the services rendered by the
design professional.
3081.3
Conditions to Lien; Preliminary Notice; Notice of Lien
In order for the design professional to be entitled to a lien
pursuant to Section 3081.2, all of the following shall occur:
(a) The landowner defaults in any payment required pursuant
to the terms of the written contract or refuses to pay upon
the demand of the design professional made in accordance with
the written contract.
(b) Not less than 10 days prior to recordation pursuant to
subdivision (c), the design professional mails by first-class
registered or certified mail, postage prepaid, addressed to
the landowner, a written demand for payment specifying that
a default has occurred pursuant to the contract or agreement
and the amount of the default.
(c) The design professional records, in the office of the
county recorder in the county in which the real property or
some portion thereof is located, a notice of lien which specifies
that a lien is created in favor of the named design professional,
specifies the amount thereof, identifies the current owner
of record of the real property, provides a legal description
of the real property to be improved, and specifies the building
permit or other governmental approval for the work of improvement
required as a condition of recording the notice of lien by
Section 3081.2.
3081.4 Expiration of Lien; Release
(a) Upon recordation of the notice of lien pursuant to subdivision
(c) of Section 3081.3, a lien is created in favor of the named
design professional.
(b) The lien created pursuant to subdivision (a) shall automatically
expire and be null and void and of no further force or effect
on the occurrence of either of the following:
(1) The commencement of the work of improvement for which
the design professional furnished services at the request
of the landowner.
(2) The expiration of 90 days after recording the notice of
lien, unless the design professional files suit to enforce
the lien within 90 days of recordation.
(c) In the event the landowner partially or fully satisfies
the lien of the design professional, the design professional
shall execute and record a document which evidences a partial
or full satisfaction and release of the lien, as the case
may be.
3081.5
Enforcement
Any
design professionals’ lien perfected pursuant to this
chapter shall be enforced pursuant to the provisions contained
in Article 7 (commencing with Section 3143) of Chapter 2 of
Title 15.
3081.6
Mechanics Lien Not Affected
This
chapter does not affect the ability of a design professional
to obtain a mechanic’s lien pursuant to Title 15 (commencing
with Section 3082) of this part.
3081.7 Time for Recording
A
design professional shall record a notice of lien pursuant
to subdivision (c) of Section 3081.3 no later than 90 days
after the design professional knows or has reason to know
that the landowner is not commencing the work of improvement.
3081.8
Other Remedies Not Affected
The
lien of a design professional perfected pursuant to this chapter
shall not affect the ability of the design professional to
pursue other remedies.
3081.9
Priorities; Construction Loans
(a)
No lien created by this chapter shall affect or take priority
over the interest of record of a purchaser, lessee, or encumbrancer,
if the interest of the purchaser, lessee, or encumbrancer
in the real property was duly recorded before recordation
of the design professionals’ lien.
(b)
No lien created by this chapter shall affect or take priority
over an encumbrance of a construction lender which funds the
loan to commence the work of improvement for which the design
professional furnished services at the request of the landowner.
3081.10
Single Family Dwellings
The design professionals’ lien provided in this chapter
shall not apply to a work of improvement relating to a single-family
owner occupied residence where the construction costs are
less than one hundred thousand dollars ($100,000) in value.
TITLE 15 WORKS OF IMPROVEMENT
CHAPTER 1 GENERAL DEFINITIONS
3082
Chapter Governs Construction of Title
Unless
the context otherwise requires, the provisions in this chapter
govern the construction of this title.
3083
“Bonded Stop Notice”
“Bonded stop notice” means a stop notice, given
to any construction lender, accompanied by a bond with good
and sufficient sureties in a penal sum equal to 11/4 times
the amount of such claim conditioned that if the defendant
recovers judgment in an action brought on such verified claim
or on the lien filed by the claimant, the claimant will pay
all costs that may be awarded against the owner, original
contractor, construction lender, or any of them, and all damages
that such owner, original contractor, or construction lender
may sustain by reason of the equitable garnishment effected
by the claim or by reason of the lien, not exceeding the sum
specified in the bond. To be effective such bonded stop notice
shall be delivered to the manager or other responsible officer
or person at the office of the construction lender or must
be sent to such office by registered or certified mail. If
such notice is delivered or sent to any institution or organization
maintaining branch offices, it shall not be effective unless
delivered or sent to the office or branch administering or
holding such construction funds.
3084
“Claim of Lien”
(a)
“Claim of lien” means a written statement, signed
and verified by the claimant or by the claimant’s agent,
containing all of the following:
(1)
A statement of the claimant’s demand after deducting
all just credits and offsets.
(2)
The name of the owner or reputed owner, if known.
(3)
A general statement of the kind of labor, services, equipment,
or materials furnished by the claimant.
(4)
The name of the person by whom the claimant was employed or
to whom the claimant furnished the labor, services, equipment,
or materials.
(5)
A description of the site sufficient for identification.
(b)
A claim of lien in otherwise proper form, verified and containing
the information required by this section shall be accepted
by the recorder for recording and shall be deemed duly recorded
without acknowledgment.
3085
“Claimant”
“Claimant”
means any person entitled under this title to record a claim
of lien, to give a stop notice in connection with any work
of improvement, or to recover on any payment bond, or any
combination of the foregoing.
3086
“Completion”
“Completion” means, in the case of any work of
improvement other than a public work, actual completion of
the work of improvement. Any of the following shall be deemed
equivalent to a completion:
(a) The occupation or use of a work of improvement by the
owner, or his agent, accompanied by cessation of labor thereon.
(b) The acceptance by the owner, or his agent, of the work
of improvement.
(c) After the commencement of a work of improvement, a cessation
of labor thereon for a continuous period of 60 days, or a
cessation of labor thereon for a continuous period of 30 days
or more if the owner files for record a notice of cessation.
If
the work of improvement is subject to acceptance by any public
entity, the completion of such work of improvement shall be
deemed to be the date of such acceptance; provided, however,
that, except as to contracts awarded under the State Contract
Act, Chapter 3 (commencing with Section 14250), Part 5, Division
3, Title 2 of the Government Code, a cessation of labor on
any public work for a continuous period of 30 days shall be
a completion thereof.
3087 “Construction Lender”
“Construction lender” means any mortgagee or beneficiary
under a deed of trust lending funds with which the cost of
the work of improvement is, wholly or in part, to be defrayed,
or any assignee or successor in interest of either, or any
escrow holder or other party holding any funds furnished or
to be furnished by the owner or lender or any other person
as a fund from which to pay construction costs.
3088 “Contract”
“Contract” means an agreement between an owner
and any original contractor providing for the work of improvement
or any part thereof.
3089 “Laborer”
“Laborer” means any person who, acting as an employee,
performs labor upon or bestows skill or other necessary services
on any work of improvement.
3090 “Materialmen”
“Materialman” means any person who furnishes materials
or supplies to be used or consumed in any work of improvement.
3092
“Notice of Cessation”
“Notice of cessation” means a written notice,
signed and verified by the owner or his agent, containing
all of the following:
(a) The date on or about when the cessation of labor commenced.
(b) A statement that such cessation has continued until the
recording of the notice of cessation.
(c) The name and address of the owner.
(d) The nature of the interest or estate of the owner.
(e) A description of the site sufficient for identification,
containing the street address of the site, if any. If a sufficient
legal description of the site is given, the validity of the
notice shall not, however, be affected by the fact that the
street address is erroneous or is omitted.
(f) The name of the original contractor, if any, for the work
of improvement as a whole.
(g)
For the purpose of this section, “owner” means
the owner who causes a building, improvement, or structure,
to be constructed, altered, or repaired (or his successor
in interest at the date of a notice of cessation from labor
is filed for record) whether the interest or estate of such
owner be in fee, as vendee under a contract of purchase, as
lessee, or other interest or estate less than the fee. Where
such interest or estate is held by two or more persons as
joint tenants or tenants in common, any one or more of the
cotenants may be deemed to be the “owner” within
the meaning of this section. Any notice of cessation signed
by less than all of such cotenants shall recite the names
and addresses of all such cotenants.
The notice of cessation shall be recorded in the office of
the county recorder of the county in which the site is located
and shall be effective only if there has been a continuous
cessation of labor for at least 30 days prior to such recording.
3093 “Notice of Completion”
“Notice of completion” means a written notice,
signed and verified by the owner or his agent, containing
all of the following:
(a) The date of completion (other than a cessation of labor).
The recital of an erroneous date of completion shall not,
however, affect the validity of the notice if the true date
of completion is within 10 days preceding the date of recording
of such notice.
(b) The name and address of the owner.
(c) The nature of the interest or estate of the owner.
(d) A description of the site sufficient for identification,
containing the street address of the site, if any. If a sufficient
legal description of the site is given, the validity of the
notice shall not, however, be affected by the fact that the
street address recited is erroneous or that such street address
is omitted.
(e) The name of the original contractor, if any, or if the
notice is given only of completion of a contract for a particular
portion of such work of improvement, as provided in Section
3117, then the name of the original contractor under such
contract, and a general statement of the kind of work done
or materials furnished pursuant to such contract.
The notice of completion shall be recorded in the office of
the county recorder of the county in which the site is located,
within 10 days after such completion. A notice of completion
in otherwise proper form, verified and containing the information
required by this section shall be accepted by the recorder
for recording and shall be deemed duly recorded without acknowledgment.
If there is more than one owner, any notice of completion
signed by less than all of such co-owners shall recite the
names and addresses of all of such co-owners; and provided
further, that any notice of completion signed by a successor
in interest shall recite the names and addresses of his transferor
or transferors.
For the purpose of this section, owner is defined as set forth
in subdivision (g) of Section 3092.
3094
“Notice of Nonresponsibility”
“Notice of nonresponsibility” means a written
notice, signed and verified by a person owning or claiming
an interest in the site who has not caused the work of improvement
to be performed, or his agent, containing all of the following:
(a) A description of the site sufficient for identification.
(b) The name and nature of the title or interest of the person
giving the notice.
(c) The name of the purchaser under contract, if any, or lessee,
if known.
(d) A statement that the person giving the notice will not
be responsible for any claims arising from the work of improvement.
Within 10 days after the person claiming the benefits of nonresponsibility
has obtained knowledge of the work of improvement, the notice
provided for in this section shall be posted in some conspicuous
place on the site. Within the same 10-day period provided
for the posting of the notice, the notice shall be recorded
in the office of the county recorder of the county in which
the site or some part thereof is located.
3095 “Original Contractor”
“Original contractor” means any contractor who
has a direct contractual relationship with the owner.
3096
“Payment Bond”
“Payment bond” means a bond with good and sufficient
sureties that is conditioned for the payment in full of the
claims of all claimants and that also by its terms is made
to inure to the benefit of all claimants so as to give these
persons a right of action to recover upon this bond in any
suit brought to foreclose the liens provided for in this title
or in a separate suit brought on the bond. An owner, original
contractor, or a subcontractor may be the principal upon any
payment bond.
3097
“Preliminary Twenty-Day Notice (Private Work)”
“Preliminary 20-day notice (private work)” means
a written notice from a claimant that is given prior to the
recording of a mechanic’s lien, prior to the filing
of a stop notice, and prior to asserting a claim against a
payment bond, and is required to be given under the following
circumstances:
(a) Except one under direct contract with the owner or one
performing actual labor for wages, or an express trust fund
described in Section 3111, every person who furnishes labor,
service, equipment, or material for which a lien or payment
bond otherwise can be claimed under this title, or for which
a notice to withhold can otherwise be given under this title,
shall, as a necessary prerequisite to the validity of any
claim of lien, payment bond, and of a notice to withhold,
cause to be given to the owner or reputed owner, to the original
contractor, or reputed contractor, and to the construction
lender, if any, or to the reputed construction lender, if
any, a written preliminary notice as prescribed by this section.
(b) Except the contractor, or one performing actual labor
for wages, or an express trust fund described in Section 3111,
all persons who have a direct contract with the owner and
who furnish labor, service, equipment, or material for which
a lien or payment bond otherwise can be claimed under this
title, or for which a notice to withhold can otherwise be
given under this title, shall, as a necessary prerequisite
to the validity of any claim of lien, claim on a payment bond,
and of a notice to withhold, cause to be given to the construction
lender, if any, or to the reputed construction lender, if
any, a written preliminary notice as prescribed by this section.
(c) The preliminary notice referred to in subdivisions (a)
and (b) shall contain the following information:
(1) A general description of the labor, service, equipment,
or materials furnished, or to be furnished, and an estimate
of the total price thereof.
(2) The name and address of the person furnishing that labor,
service, equipment, or materials.
(3) The name of the person who contracted for purchase of
that labor, service, equipment, or materials.
(4) A description of the jobsite sufficient for identification.
(5) The following statement in boldface type:
NOTICE TO PROPERTY OWNER
If bills are not paid in full for the labor, services, equipment,
or materials furnished or to be furnished, a mechanic’s
lien leading to the loss, through court foreclosure proceedings,
of all or part of your property being so improved may be placed
against the property even though you have paid your contractor
in full. You may wish to protect yourself against this consequence
by (1) requiring your contractor to furnish a signed release
by the person or firm giving you this notice before making
payment to your contractor or (2) any other method or device
that is appropriate under the circumstances.
(6) If the notice is given by a subcontractor who is required
pursuant to a collective bargaining agreement to pay supplemental
fringe benefits into an express trust fund described in Section
3111, the notice shall also contain the identity and address
of the trust fund or funds.
If an invoice for materials contains the information required
by this section, a copy of the invoice, transmitted in the
manner prescribed by this section shall be sufficient notice.
A certificated architect, registered engineer, or licensed
land surveyor who has furnished services for the design of
the work of improvement and who gives a preliminary notice
as provided in this section not later than 20 days after the
work of improvement has commenced shall be deemed to have
complied with subdivisions (a) and (b) with respect to architectural,
engineering, or surveying services furnished, or to be furnished.
(d) The preliminary notice referred to in subdivisions (a)
and (b) shall be given not later than 20 days after the claimant
has first furnished labor, service, equipment, or materials
to the jobsite. If labor, service, equipment, or materials
have been furnished to a jobsite by a claimant who did not
give a preliminary notice, that claimant shall not be precluded
from giving a preliminary notice at any time thereafter. The
claimant shall, however, be entitled to record a lien, file
a stop notice, and assert a claim against a payment bond only
for labor, service, equipment, or material furnished within
20 days prior to the service of the preliminary notice, and
at any time thereafter.
(e) Any agreement made or entered into by an owner, whereby
the owner agrees to waive the rights or privileges conferred
upon the owner by this section shall be void and of no effect.
(f) The notice required under this section may be served as
follows:
(1) If the person to be notified resides in this state, by
delivering the notice personally, or by leaving it at his
or her address of residence or place of business with some
person in charge, or by first-class registered or certified
mail, postage prepaid, addressed to the person to whom notice
is to be given at his or her residence or place of business
address or at the address shown by the building permit on
file with the authority issuing a building permit for the
work, or at an address recorded pursuant to subdivision (j).
(2) If the person to be notified does not reside in this state,
by any method enumerated in paragraph (1) of this subdivision.
If the person cannot be served by any of these methods, then
notice may be given by first-class certified or registered
mail, addressed to the construction lender or to the original
contractor.
(3) When service is made by first-class certified or registered
mail, service is complete at the time of the deposit of that
registered or certified mail.
(g) A person required by this section to give notice to the
owner, to an original contractor, and to a person to whom
a notice to withhold may be given, need give only one notice
to the owner, to the original contractor, and to the person
to whom a notice to withhold may be given with respect to
all materials, service, labor, or equipment he or she furnishes
for a work of improvement, that means the entire structure
or scheme of improvements as a whole, unless the same is furnished
under contracts with more than one subcontractor, in which
event, the notice requirements shall be met with respect to
materials, services, labor, or equipment furnished to each
contractor.
If a notice contains a general description required by subdivision
(a) or (b) of the materials, services, labor, or equipment
furnished to the date of notice, it is not defective because,
after that date, the person giving notice furnishes materials,
services, labor, or equipment not within the scope of this
general description.
(h) Where the contract price to be paid to any subcontractor
on a particular work of improvement exceeds four hundred dollars
($400), the failure of that contractor, licensed under Chapter
9 (commencing with Section 7000) of Division 3 of the Business
and Professions Code, to give the notice provided for in this
section, constitutes grounds for disciplinary action by the
Registrar of Contractors.
Where
the notice is required to contain the information set forth
in paragraph (6) of subdivision (c), a failure to give the
notice, including that information, that results in the filing
of a lien, claim on a payment bond, or the delivery of a stop
notice by the express trust fund to which the obligation is
owing constitutes grounds for disciplinary action by the Registrar
of Contractors against the subcontractor if the amount due
the trust fund is not paid.
(i) Every city, county, city and county, or other governmental
authority issuing building permits shall, in its application
form for a building permit, provide space and a designation
for the applicant to enter the name, branch, designation,
if any, and address of the construction lender and shall keep
the information on file open for public inspection during
the regular business hours of the authority.
If there is no known construction lender, that fact shall
be noted in the designated space. Any failure to indicate
the name and address of the construction lender on the application,
however, shall not relieve any person from the obligation
to give to the construction lender the notice required by
this section.
(j) A mortgage, deed of trust, or other instrument securing
a loan, any of the proceeds of which may be used for the purpose
of constructing improvements on real property, shall bear
the designation “Construction Trust Deed” prominently
on its face and shall state all of the following: (1) the
name and address of the lender, and the name and address of
the owner of the real property described in the instrument,
and (2) a legal description of the real property which secures
the loan and, if known, the street address of the property.
The failure to be so designated or to state any of the information
required by this subdivision shall not affect the validity
of the mortgage, deed of trust, or other instrument.
Failure to provide this information on this instrument when
recorded shall not relieve persons required to give preliminary
notice under this section from that duty.
The county recorder of the county in which the instrument
is recorded shall indicate in the general index of the official
records of the county that the instrument secures a construction
loan.
(k) Every contractor and subcontractor who is required pursuant
to a collective bargaining agreement to pay supplementary
fringe benefits into an express trust fund described in Section
3111, and who has failed to do so shall cause to be given
to the trust fund and to the construction lender, if any,
or to the reputed construction lender, if any, not later than
the date the payment due to the trust fund became delinquent,
a written notice containing all of the following:
(1) The name of the owner and the contractor.
(2) A description of the jobsite sufficient for identification.
(3) The identity and address of the express trust fund.
(4) The total number of straight time and overtime hours on
each job, payment for which the contractor or subcontractor
is delinquent to the express trust.
(5) The amount then past due and owing.
Failure to give this notice shall constitute grounds for disciplinary
action by the Registrar of Contractors.
(l) Every written contract entered into between a property
owner and an original contractor shall provide space for the
owner to enter his or her name and address of residence; and
place of business if any. The original contractor shall make
available the name and address of residence of the owner to
any person seeking to serve the notice specified in subdivision
(c).
(m) Every written contract entered into between a property
owner and an original contractor, except home improvement
contracts and swimming pool contracts subject to Article 10
(commencing with Section 7150) of Chapter 9 of Division 3
of the Business and Professions Code, shall provide space
for the owner to enter the name and address of the construction
lender or lenders. The original contractor shall make available
the name and address of the construction lender or lenders
to any person seeking to serve the notice specified in subdivision
(c). Every contract entered into between an original contractor
and subcontractor, and between subcontractors, shall provide
a space for the name and address of the owner, original contractor,
and any construction lender.
(n) Where one or more construction loans are obtained after
commencement of construction, the property owner shall provide
the name and address of the construction lender or lenders
to each person who has given the property owner the notice
specified in subdivision (c).
(o) (1) Each person who has served a preliminary 20-day notice
pursuant to subdivision (f) may file the preliminary 20-day
notice with the county recorder in the county in which any
portion of the property is located. A preliminary 20-day notice
filed pursuant to this section shall contain all of the following:
(A) The name and address of the person furnishing the labor,
service, equipment, or materials.
(B) The name of the person who contracted for purchase of
the labor, service, equipment, or materials.
(C) The common street address of the jobsite.
(2) Upon the acceptance for recording of a notice of completion
or notice of cessation the county recorder shall mail to those
persons who have filed a preliminary 20-day notice, notification
that a notice of completion or notice of cessation has been
recorded on the property, and shall affix the date that the
notice of completion or notice of cessation was recorded with
the county recorder.
(3) The failure of the county recorder to mail the notification
to the person who filed a preliminary 20-day notice, or the
failure of those persons to receive the notification or to
receive complete notification, shall not affect the period
within which a claim of lien is required to be recorded. However,
the county recorder shall make a good faith effort to mail
notification to those persons who have filed the preliminary
20-day notice under this section and to do so within five
days after the recording of a notice of completion or notice
of cessation.
(4) This new function of the county recorder shall not become
operative until July 1, 1988. The county recorder may cause
to be destroyed all documents filed pursuant to this section,
two years after the date of filing.
(5) The preliminary 20-day notice which a person may file
pursuant to this subdivision is for the limited purpose of
facilitating the mailing of notice by the county recorder
of recorded notices of completion and notices of cessation.
The notice which is filed is not a recordable document and
shall not be entered into those official records of the county
which by law impart constructive notice. Notwithstanding any
other provision of law, the index maintained by the recorder
of filed preliminary 20-day notices shall be separate and
distinct from those indexes maintained by the county recorder
of those official records of the county which by law impart
constructive notice. The filing of a preliminary 20-day notice
with the county recorder does not give rise to any actual
or constructive notice with respect to any party of the existence
or contents of a filed preliminary 20-day notice nor to any
duty of inquiry on the part of any party as to the existence
or contents of that notice.
(p) The change made to the statement described in subdivision
(c) by Chapter 974 of the Statutes of 1994 shall have no effect
upon the va |
