Governor Davis signed SB 134 into law on July 14, 2003!

Effective January 1, 2004 , the bill requires private project owners to notify all subcontractors and suppliers within 10 days after recording a Notice of Completion -- provided the parties have properly filed 20 day preliminary lien notices – if they wish to shorten your lien rights to only 30 days. Should the owner fail to notify you that the job is complete, the period for you to record a lien is extended to 90 days.

SB 134 requires new language to be included in the 20-day preliminary notice forms effective January 1, 2004. (This law will apply to private works only).

The new language is as follows.

Notice to Property Owner:

If bills are not paid in full for the labor, services, equipment, or materials furnished or to be furnished, a mechanics’ lien leading to the loss, through court foreclosure proceedings of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full. You may wish to protect yourself against the consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractors, or (2) any other method or device that is appropriate under the circumstances. Other than residential homeowners of dwellings containing fewer than five units, private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminary 20-day lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded with 10 days of its recordation. Notice shall be by registered mail, certified mail, or first class mail, evidenced by a certificate of mailing. Failure to notify will extend the deadlines to record a lien.