What is a preliminary lien notice and when is it necessary?

A preliminary lien notice is a legal document that is important to the construction industry in California. It is a notice given to the owner of a construction project informing them that a contractor, subcontractor, or supplier has provided labor or materials towards the project and they have not been paid. The notice serves as a warning to the owner that if payment is not made, a lien against the property may be filed. Preliminary lien notices are necessary for contractors, subcontractors, and suppliers in California to protect their rights in the event of non-payment. State laws require that the notice must be sent no later than 20 days after the work or materials have been provided. Without a preliminary lien notice, the contractor, subcontractor, or supplier may not be able to exercise their right to file a mechanics lien against the property if payment is not received. In California, the preliminary lien notice must include specific information, including the name and address of the contractor, subcontractor, or supplier, the name of the owner, and the legal description of the property on which the labor or materials are provided. The notice must also include an itemized statement of the amount due, the date work or materials were provided, and a statement that the contractor, subcontractor, or supplier reserves the right to file a lien against the property if payment is not made.

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What is a preliminary lien notice and when is it necessary?

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