To understand the function of a mechanics lien form, you must first know what a lien is. This is a “legal claim to a property to cover an unpaid debt made with the property as security.” As such, the form is a document you use when a supplier or worker has only received payment after placing a lien for a receivable conducted on a certain property.
Mechanics Lien Forms
What is a mechanics lien form?
You can use a mechanic’s lien template if you or your company has supplied materials, labor or both to a property. When you and the other party have agreed on the contents of the document, the property cannot get transferred, refinanced or sold until you have settled the lien.
This is an assurance for your company that you will receive payment for the materials and labor supplied. To acquire a mechanics lien form, you have to provide information about both parties involved along with the materials or services you supplied.
As the company claiming the secured interest, you must provide information like your name, the name of your company, your license number, your business address, and the county and state where you created the lien.
In addition, your company must also describe the materials or services you supplied. The provision of this information and its filing with the recorder’s office becomes an assurance for your company that you will get covered for all of your materials and labor in case the other party doesn’t fulfill their obligations.
Components of the form
You can either download a free mechanics lien form or make one yourself. Either way, the mechanic’s lien form you use must include the following information:
- The parties involved
This includes the complete names, addresses, and contact details of the Lienor (you), your lawyer, and the property owner.
- Details of the supplied materials and labor
This is where you will stipulate all of the contract’s details. You must specify the descriptions of the labor performed, the materials provided, payment details, and the dates when you provided materials of labor.
- A description of the property involved
Your description should be as specific as possible and it should include the property’s address and the construction specifications like material and size. If the involved property is a vehicle, include the make, model, color license plate number, and year.
- Location details
This refers to the address at which your company rendered services or supplied the materials. Also, describe the building type – if you worked in a “private residence,” an “industrial lot” or somewhere else.
- Signatures of the parties involved
The form is like any other legal document in the sense that it only becomes legal after the parties involved have affixed their signatures on it. The signing process should take place in the presence of a notary public who also signs and dates the document.
Mechanics Lien Templates
Can you put a mechanic’s lien on property?
As a supplier or subcontractor who has not received payment for materials or services rendered, you can use a mechanic’s lien form to place a mechanic’s lien on a property. But you first need to file a “mechanic’s lien claim” in the county where you worked on the property.
How do I file a mechanic’s lien in California?
As a company owner, you want to get paid for the services you have rendered or the materials you have supplied, whether in improvement, renovation or construction. If you’re a contractor in California, here are the steps to take when filing the lien and using a contractor lien form:
- Determine your eligibility
You can only file a mechanics lien California if you contract with the owner of the property, subcontractor, prime contractor or an agent of any of these.
- Send a 20-day preliminary notice
This notice should include the language required by your statute and it should include proof of delivery. You must send this notice within 20 days when you first furnished materials, services or labor. Sending the notice late only protects your right to lien for the materials, services or labor furnished to the project within 20 days of the delivery.
- Prepare the mechanic’s lien form
The laws in California are very strict on this aspect. You must comply with all of the requirements of the statute. For one, your document must include the following:
A statement of your demand.
Name of the property owner.
A statement that identifies the purpose of the lien.
The name of the person or company that hired you.
A legal property description.
A proof of service affidavit.
A statutory notice statement.
- Deliver the mechanic’s lien to the owner of the property
Once you have prepared your document, you have to make a copy, sign it, and have it verified. After that, send the document to the owner of the property. Make sure to send this copy through registered mail.
Keep the receipt of the mailing. You must also draft then sign an affidavit that attests that you delivered one copy of this form to the property owner through registered mail. Attach the affidavit to the lien upon filing.
- File the Lien with the Recorder’s Office
You should file the original copy of the form along with the affidavit with the Recorder’s Office of the county where you worked on the property. In California, you must record your mechanic’s lien within:
90 days from when your project was either abandoned or completed.
60 days from when you have filed a Notice of Abandonment, Notice of Cessation or Notice of Completion
- Continue with your collection attempts
As soon as you have your lien filed, you can still make collection efforts with the property owner or any other parties involved. You can find out whether the lien has made an impact on their willingness to pay or not.
If they decide to pay, you must file a cancellation for the lien. If the lien had no effect, you may have to escalate your action to get paid. Start preparing for a lawsuit to enforce the lien.
Contractor Lien Forms
Does a mechanics lien need to be notarized?
In almost all cases, there is really no need for notarization. But if you want to make things official, it’s still safer to have your mechanics lien form notarized.