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California 20 day Preliminary NoticesThe owner paid your customer but your customer didn't pay you...20 day Preliminary Notices: You still file the lien because it's the legal responsibility of the Owner to insure that everyone gets paid. (Preliminary Notice forms and Notice to Owner forms for other states)This may mean that the Owner/Lender has to require lien releases/waivers; pay bills with joint checks; place phone calls to the creditors to verify that they have indeed been paid; etc. That's why you still lien, because the Owner didn't do what he was supposed to do, which was to make sure that you got paid. He can't say that he didn't know you were owed money, because you have proof (the proof is explained a bit further on) that he did indeed receive your 20-day preliminary notice which told him that you are present on the job. Now let's take a look at the importance of processing the 20 day preliminary notices in a timely manner. The preliminary notice MUST be mailed out within the time allowed by the law. This time-frame varies from state to state, so you must check to see what the requirement is in the state the job is located in. Couple examples: It's my understanding that in Oregon the preliminary notices must be processed within 8 days of the first shipment or incurrence of labor costs, whichever applies to your situation.The lien statutes in most states must be followed precisely, courts do not afford much latitude with respect to timelines and compliance with statutory forms. As mentioned above, the time-frame for California is 20 days. For contractors, this means you've got to process and mail 20 day preliminary notices within 20 days of the first day you either start work or supply material to the project (or place the material order if it's a special order item), whichever comes first. For material suppliers, this means within 20 days of the first day you supply material to the project (or order it if it's a special order item). The 20 day preliminary notices cover all work, material, etc. for up to 20 days prior to the postmark date on the mailing of the preliminary notice. So, if you've been on the job for 30 days and are just now sending the preliminary notice, you'll be covered for 20 days back (or from after the first 10 days forward).
Next article in this series: 20 Day Preliminary Notices What the 20 days means... All articles in this series: Getting the California 20 day Preliminary Notice info from your customer Don't be nervous about getting the prelim info from your customer California law governs the text of the preliminary notice form Make sure your preliminary notice form has the correct text or you may end up without lien rights California 20 day Preliminary notices protect your lien rights Learn how preliminary notices protect your lien rights California Preliminary Notices can protect against being "stiffed" Read on, you'll be shocked at how easy it is to get "stiffed" when you don't protect your right to lien... 20 Day Preliminary Notices and mechanics liens Important: Even if the Owner has paid YOUR customer in full, if you haven't been paid you STILL file your lien. Here's why...
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