Sacramento Report
November 16, 2010
Mechanics' Lien Bill Enacts Major Revisions
Massive mechanics' lien law changes will become effective on July 1, 2012 under Senate Bill 189 (Lowenthal) which was signed by the Governor. The bill is the culmination of a California Law Revision Commission study and effects a total reorganization of the mechanics' lien law.
Once effective, there will be a number of important changes for the title industry. These changes include: a separate recording index for preliminary notices; revisions to the lien release bond; a recording process and new language for a notice of completion: a revised preliminary notice form and waiver of release forms; priority provisions for optional advances by the construction lender where the total of all advances does not exceed the amount of the original construction loan; and a new timeline for filing a lis pendens.
