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November 2010 Archives

Beginning in January 2011 Mechanic's Lien Claimants will be Required to Serve Project Owners a Specified Notice Before Recording Their Lien

At present, to record a mechanic's lien a claimant need only to complete and execute a claim of lien form and record the same at the county recorder's office in the county where the project was located. The claimant has no obligation to inform the project owner that the lien has been recorded. Occasionally project owners first learn that their property is subject to a mechanic's lien when they are served an already filed lawsuit seeking foreclosure of the lien.

Appellate Court Affirms that Oral Agreement for Home Improvement Project May Be Enforced Against "Sophisticated Homeowner" Notwithstanding Business & Professions Code Requirement that All Home Improvement Contracts Be in Writing

Business and Professions Code section 7159 governs contracts for home improvement projects (which exceed $500), and provides heightened requirements for same, including a requirement that all contracts for these projects be in writing.

Beginning in January 2011 a Lis Pendens Will Become a Mandatory Element to Enforcing a Mechanic's Lien

A lis pendens (a.k.a. notice of pendency of action) is a document which is recorded against the title of real property to notify interested parties that litigation is pending which impacts the said property's title. The lis pendens protects claimants by ensuring that their claim is fully attached to the property and that future interest holders take title subject to the claim, and protects future interest holders by warning them that the claim exists.

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