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CSLB Industry Bulletin - 07/11/2012

New Mechanics Lien Release Forms Available on CSLB Website

Updated forms reflect legal changes that took effect July 1, 2012


SACRAMENTO — The Contractors State License Board (CSLB) is reminding licensees of revisions that were made to the state’s mechanics lien laws on July 1, 2012. Legal revisions mainly change the wording and format of the mechanics lien notice. Because of the changes, CSLB has updated release forms to reflect the new language. Contractors can use these documents to protect their lien rights on construction projects. The forms are available on the CSLB website (www.cslb.ca.gov).

The 20-Day Preliminary Notice is now simply called Preliminary Notice. In addition, the wording of the Notice to Property Owner statement, required as part of the Preliminary Notice, has changed. Subcontractors and suppliers should use the newly worded Notice for private home improvement projects. The Preliminary Notice should be delivered to the homeowner in person or by certified, registered, or express mail, or overnight delivery, with a receipt of the mailing as proof. You may give notice any time before work starts or products are delivered, and up to 20 days after. If you give notice more than 20 days after work or delivery, your lien rights only apply to the work or products provided 20 days before the notice was given, and anytime thereafter.

The Notice of Mechanics Lien wording also changed in the new law. This notice must accompany the lien claim and be sent via certified, registered, or first class mail, with a certificate of mailing as proof. Failure to send the properly worded Notice with the lien claim could result in the lien being unenforceable.

The conditional and unconditional lien release forms also have changed. Make sure subcontractors and suppliers sign the new conditional forms as progress payments are owed, and when the project is finished before they are given final payment. Have them sign the new unconditional release forms after they receive progress payments and their final payment. The new law gives homeowners 15 days instead of 10 to file a Notice of Completion with the County Recorder. If a notice is filed, the contractor has 60 days and subcontractors have 30 days to record a lien. If no notice is filed, all parties have 90 days to record a lien.

New Forms