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Your Legal Corner - Client Alert Blog

New Rules For Service Of A Mechanics Lien

Written By: Melissa C. Marsh, Esq., California Attorney, November 2011 Add to Favorites
A.B. 456 amends California Civil Code Sections 3084 and 8416, relating to mechanics liens. Existing law requires a claim of mechanics' lien to be served on the "owner or reputed owner" of the property. Accompanying the lien is a proof of service affidavit which is required to state the name of the person upon whom the mechanics' lien was served. Effective January 1, 2012, for a mechanics' lien to be valid, the service of process affidavit (proof of service) must state not only the name of the owner or reputed owner of the property, but also the title or capacity in which that person or entity was served.

Under current California law (Civil Code § 8450), a design professional may validly lien the project site, even if the planned work of improvement fails to commence, for the amount of the design professional’s fee provided under the contract, or the reasonable value of those services, whichever is less. Effective January 1, 2012, S.B. 424 amends California Civil Code § 8319 and 8450 to allow a design professional to convert a recorded design professional lien for private works of improvement into a mechanics' lien if:

  1. the design professional lien has expired,
  2. the design professional lien remains fully or partially unpaid,
  3. the design professional records a mechanic’s lien within 30 days of the expiration of the design professional lien, AND
  4. the mechanics' lien states that it is a converted design professional lien.
It should be noted that the design professional must comply with all laws regarding recordation of a mechanics' lien, excepting only the preliminary notice requirements. The converted design professional lien is entitled to the same priority as a mechanics' lien.

Tags: mechanics lien
Posted In: Real Estate Reporter 

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Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.