{"id":898364,"date":"2021-01-07T14:54:32","date_gmt":"2021-01-07T21:54:32","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898364"},"modified":"2021-01-07T14:54:37","modified_gmt":"2021-01-07T21:54:37","slug":"mechanics-lien-released-california","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-released-california\/","title":{"rendered":"If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? Will the New Mechanics Lien be Enforceable?"},"content":{"rendered":"\n<p>William L. Porter | <a href=\"https:\/\/www.porterlaw.com\/if-i-released-my-california-mechanics-lien-can-i-file-a-new-mechanics-lien-on-the-same-project-will-the-new-mechanics-lien-be-enforceable\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Porter Law Group<\/a><\/p>\n\n\n\n<p>In general, the answer to the above questions is \u201cYes\u201d, but only if you meet the following requirements:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>You must only release the mechanics lien itself, but not the \u201cright\u201d to a mechanics lien<\/strong>:\u00a0 There is an important distinction to be made between releasing a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-subordination-clause\/\" target=\"_blank\" rel=\"noreferrer noopener\">mechanics lien<\/a> and releasing the\u00a0<em>right to<\/em>\u00a0a mechanics lien.\u00a0 Whether you do one or the other will depend on the specific language used in your release.\u00a0 In the case of\u00a0<em>Santa Clara Land Title Co. v. Nowack and Associates, Inc.<\/em>\u00a0 (1991) 226 Cal. App.3d, 1558 a \u201crelease of mechanics lien\u201d document was recorded TO THE County Recorder\u2019s office which included a statement that the mechanics lien was \u201cfully satisfied, released and discharged\u201d.\u00a0 Based on this language, the court concluded that the mechanics lien claimant had waived its \u201cright\u201d to a further mechanics lien on the same property for the work in question.\u00a0 The court concluded that since the release stated that the claim was \u201cfully satisfied\u201d the right to mechanics lien on the project had forever been waived.\u00a0 The\u00a0<em>Nowak<\/em>\u00a0case can be distinguished from the case of\u00a0<em>Koudmani v. Ogle Enterprises, Inc.,<\/em>\u00a0(1996) 47 Cal.App.4th\u00a01650, where the release of mechanics lien only stated that the mechanics lien was \u201cotherwise released and discharged\u201d and not that it was \u201csatisfied\u201d.\u00a0 Based on the distinction drawn from the two cases, a simple mechanics lien release that only releases the mechanics lien itself, but not the \u201cright\u201d to a mechanics lien should be used.\u00a0 At the following link you will find a proper form to achieve this purpose:\u00a0<a href=\"https:\/\/www.porterlaw.com\/wp-content\/uploads\/2019\/06\/03PRI-Mechanics-Lien-Release.pdf\" rel=\"nofollow\">https:\/\/www.porterlaw.com\/wp-content\/uploads\/2019\/06\/03PRI-Mechanics-Lien-Release.pdf<\/a><\/li><li><strong>You must still be within the proper time period to record an enforceable mechanics lien:<\/strong>\u00a0 To determine if you are within the time period to record an enforceable mechanics lien, the claimant must consider a number of factors.\u00a0 These include whether the claimant is a direct contractor (generally that you have a contract with the property owner), a subcontractor or a material supplier, whether the project has been completed or perhaps suspended without completion, whether a valid, timely \u201cnotice of completion\u201d or \u201cnotice of cessation\u201d has been recorded, and other factors.\u00a0 For a discussion of many of these factors see\u00a0California Civil Code\u00a08412\u20138414\u00a0and the following article:\u00a0<a href=\"https:\/\/www.porterlaw.com\/understand-how-the-mechanics-lien-deadline-depends-on-the-validity-of-the-notice-of-completion\/\" rel=\"nofollow\">https:\/\/www.porterlaw.com\/understand-how-the-mechanics-lien-deadline-depends-on-the-validity-of-the-notice-of-completion\/<\/a>\u00a0.\u00a0 Generally, though, yes, if you have released a mechanics lien without releasing the \u201cright\u201d to a mechanics lien on the same project, you can record a new enforceable mechanics lien on the same project if you are still within the time period for recording a mechanics lien.<\/li><li><strong>You must file a lawsuit to foreclose on the mechanics lien within ninety (90) days after the mechanics lien is recorded.<\/strong>\u00a0 The general rules on the enforcement of a mechanics lien are found in\u00a0California Civil Code sections\u00a08460\u20138470.\u00a0 The general rule is that unless a document called a \u201cNotice of Credit\u201d is recorded (see,\u00a0Civil Code 8460(b)), a lawsuit to foreclose on the mechanics lien must be filed in superior court no later than 90 days after the mechanics lien was recorded (see,\u00a0Civil Code\u00a08460(a)).\u00a0 For further information on extending the mechanics lien foreclosure lawsuit, see this article:\u00a0<a href=\"https:\/\/www.porterlaw.com\/how-to-extend-the-life-of-a-mechanics-lien\/\" rel=\"nofollow\">https:\/\/www.porterlaw.com\/how-to-extend-the-life-of-a-mechanics-lien\/<\/a>\u00a0.<\/li><\/ol>\n\n\n\n<p>Conclusion: There are many reasons why a claimant might release a mechanics lien and then record a new one.&nbsp; For example, if a claimant worked on the project at an early stage and had reason to believe that payment would be forthcoming in the normal course of events, and it was still long before the project was scheduled to be completed, they might consider releasing their mechanics lien early and recording a new one later if payment does not arrive.&nbsp; This would avoid having to file a lawsuit after 90 days on the first mechanics lien.&nbsp; Another example might be if a contractor affirmatively promised payment in exchange for releasing a particular mechanics lien.&nbsp; It might not be too risky to release such a mechanics lien in most cases if the project was still ongoing and the opportunity to record a new mechanics lien would remain open until the project was eventually completed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>William L. Porter | Porter Law Group In general, the answer to the above questions is \u201cYes\u201d, but only if you meet the following requirements: You must only release the mechanics lien itself, but not the \u201cright\u201d to a mechanics lien:\u00a0 There is an important distinction to be made between releasing a mechanics lien and&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-released-california\/\">Continue reading <span class=\"screen-reader-text\">If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? Will the New Mechanics Lien be Enforceable?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10772],"tags":[9895,88,184],"class_list":["post-898364","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-california","tag-mechanics-lien-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? 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