When and Why You Need to File a Pre-Lien Notice
If you work on California construction projects, then you may have probably heard about Pre-Lien Notice, also known as Prelim or 20-day notice. If you haven’t, then you probably should know what it is, why you should file it and how to file it.
This notice helps you protect your right to payments which you are owed by property owners in case of disputes, and also helps you secure lien rights against the property you worked on unless payments are cleared.
In this post, we’ll break down the basics of Prelim so you can protect your right to get paid for your hard work.
What is Pre-Lien Notice in California?
A Pre-Lien Notice in the state of California is a legal document that you send at the start of a construction project. It simply lets the property owner, general contractor, construction lender, or other stakeholders know that you are working on the project or supplying materials or equipment. The notice is not a lien; it’s just a notification that you might have lien rights if you don’t get paid.
Which Persons Can File a Preliminary Notice?
In California, all the interested parties working on a construction project and providing their services and materials can file a Preliminary Notice. These include:
Subcontractors
Material suppliers
Equipment lessors
Laborers (in some circumstances)
Any party that provides work, materials, or equipment to a project through another contractor or supplier
Direct contractors (those who contract directly with the owner) are generally not required to serve a Preliminary Notice to preserve their lien rights, but it is still a good practice for transparency and documentation.
When Do You Need to File a Pre-Lien Notice?
Timing is a very important thing to remember when filing a Preliminary Notice. In California, if you are working on property as a subcontractor or a supplier and don’t have a general contract with the owner, then you must file a Pre-Lien notice within 20 days of when you have started working on the project.
Keep in mind that the 20-day window is important for filing the notice. If you file late, you can still secure payment rights, but you might lose the right to file a mechanics lien for some of your work or materials for the first 20 days.
Why is Filing a Pre-Lien Notice Important?
Filing a Pre-Lien Notice isn’t just a formality. It gives you a real advantage if you ever face a payment dispute. Here’s why:
It Secures Your Right to Get Paid
If you’re not paid for your work or materials, California law allows you to file a mechanics lien a powerful tool to help you collect your money in case of disputes if owners refuse to pay you. But you only have this right if you sent the Pre-Lien Notice on time.
It Lets the Owner Know Who’s Involved
The Pre-Lien notice not only helps workers secure payment rights but also keeps the project owners informed about who is working on the project, along with their involvement and the actual amount of money they are owed.
Sometimes on big projects, owners may not know everyone who’s working on their property because they may be busy elsewhere. The Pre-Lien Notice tells them exactly who to pay, so they don’t miss anyone and risk a lien.
It’s Required by Law
In California, the law says most subcontractors and suppliers must serve a Pre-Lien Notice to have lien rights. Skipping this step could mean losing out on thousands of dollars you earned if the owners refuse to pay you later on.
It Prevents Payment Problems
Because the Pre-Lien Notice puts everyone on the same page early, it can help prevent misunderstandings and delays when it’s time to get paid later on during the project.
What Happens if You Don’t File a Preliminary Notice?
If you miss the deadline or forget to send a Pre-Lien Notice within the first 20 days of work, you might lose your ability to file a mechanics lien. However, missing the deadline does not mean you cannot file it later on. If you file late, you’ll have less power to recover payment if something goes wrong. Even if you do everything right on the job, missing this step could cost you the money you’re owed.
How to File a Pre-Lien Notice
Filing a Pre-Lien Notice in California isn’t complicated, but it does have specific rules. You need to make sure the notice includes all the right details and is sent to the right people, usually by certified mail. Many contractors use professional services to handle the paperwork and deadlines, so nothing falls through the cracks.
If you need help with filing a Pre-Lien notice, be sure to contact Easy Law Inc. We will handle the entire filing process including document preparation on our end and make sure the notice is filed within the deadline period and sent to the owners so you don’t have to worry about any thing.
Take Action Now And Protect Your Payment Rights!
Don’t leave your payment to chance. Make sure your Pre-Lien Notice is filed accurately and on time with the help of California’s trusted experts. If you have questions or want to simplify the process, contact Easy Law Inc. today. Our team makes filing Preliminary Notices in California quick, easy, and stress-free. Secure your right to get paid. Reach out to us now and let us handle the paperwork, so you can focus on your business.
Easy Law Construction Notices is not a law firm, and nothing in this article should be construed as legal advice. If you are seeking legal advice regarding construction matters, you can contact The Green Law Group, LLP, for a free initial consultation.