Mechanic's lien rights A recent decision of California’s Fourth District Court of Appeal has held that the mechanic's lien rights of a general contractor may be contractually subordinated to a lender's deed of trust on a property, and may thus be terminated as a result of the foreclosure of the lender's senior lien rights. The court found this subordination to be valid despite … [Read more...] about Appeal court rules that subordinated mechanic’s lien rights can be lost
Liens on Construction
Cautions about using Joint Check agreements in construction projects
“I’ll give you your money as soon as I get mine.” It is a frequently-heard promise around home remodeling and new construction projects, particularly those using subcontractors. “Joint Check Agreements” are an easy way to control the flow of money from payer to general contractor – and in some cases to expedite payments to subcontractors. But joint check agreements can cause … [Read more...] about Cautions about using Joint Check agreements in construction projects
Property owners, contractors and suppliers, don’t run afoul of new mechanic’s lien law requirements
Are you are a contractor, supplier or property owner in California? You need to be aware of two recent changes to California’s mechanic’s lien law affecting the procedures followed by those providing services and materials for works of improvement on private property to be able to enforce the security for their payment against that property. The first change is the addition … [Read more...] about Property owners, contractors and suppliers, don’t run afoul of new mechanic’s lien law requirements