Which statement about mechanics liens under California Civil Code is correct?
Correct Answer
B) Preliminary notices are required for most projects
California Civil Code requires preliminary notices to be served to preserve lien rights on most construction projects.
Why This Is the Correct Answer
Preliminary notices (also called 20-day preliminary notices) are required for most private construction projects so that subcontractors, material suppliers, and laborers can preserve their right to file a mechanics lien. Without serving a timely preliminary notice, most claimants lose their lien rights entirely.
Why the Other Options Are Wrong
Option A: Liens must be filed before work is completed
Liens do NOT need to be filed before work is completed. California Civil Code gives claimants a window after completion (90 days for direct contractors, 90 days after cessation of labor or recordation of a notice of completion for subcontractors and suppliers) to record their lien.
Option C: Liens automatically expire after 6 months
Liens do not automatically expire after 6 months. A recorded mechanics lien expires after 90 days unless a lawsuit to enforce the lien is filed within that period; the timeframe is 90 days, not 6 months.
Option D: Liens can only be filed by general contractors
Mechanics liens are NOT limited to general contractors. Subcontractors, material suppliers, equipment lessors, and laborers can all file mechanics liens, provided they have served the required preliminary notice.
Memory Technique
Think '20 days to notice, 90 days to lien.' The preliminary notice is your early reservation of rights — file it within 20 days of starting work or lose your lien rights.
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