Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who provides authorized work or materials (direct contractor, subcontractor, design professional, equipment lessor, laborer, etc.). CA CIV CODE § 8400 DEADLINE TO PERFECT Time for recording claim depends on whether direct contractor or not: • Direct Contractors must file a lien the earlier of either (1) 90 days after completion of the work or (2) 60 days after owner records a notice of completion or cessation • Non-Direct Contractors must file a lien upon completion of work before the earlier of (1) 90 days after completion or (2) 30 days after the owner records a notice of completion or cessation. CA CIV CODE § 8412 CA CIV CODE § 8414 BROKEN PRIORITY Lien priority relates back to when work commenced for all claimants, regardless of when specific lienor’s work began. “Commencement” is not until there is some physical work on the property that is apparent, visible, and permanent. In re Showplace Square Loft Co., LLC, Bkrtcy.N.D.Cal.2003, 289 B.R. 403. CA CIV CODE § 8450 DURATION OF LIEN Lien will expire if action to enforce lien is not commenced with 90 days of recordation. CA CIV CODE § 8460 CONTENTS OF LIEN (1) Written statement; (2) verified by oath; (3) name of reputed owner, if known; (4) name of who employed lienor/for whom the lienor provided work; (5) description of property sufficient for identification; (6) lienor’s address; (7) proof of service affidavit; and (8) the statement set forth in CA CIV CODE § 8416. Test of sufficiency is whether notice is so erroneous as to render it misleading to injury of owner or so incorrect as to create in mind of owner any misapprehension as to extent and nature of lienor’s claim. Barrett-Hicks Co. v. Glas (App. 1910) 14 Cal.App. 289, 111 P. 760. CA CIV CODE § 8416 CA CIV CODE § 8422 CALIFORNIA CALIFORNIA – 507 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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