Sacramento Report
July 19, 2011
Governor Signs California Law Revision Commission (CLRC) Bills
Mechanics’ Lien Corrections
A technical corrections bill to last year’s mechanics’ lien overhaul was signed by Governor Brown. Senate Bill 190 (Lowenthal) updates several cross-references and makes technical corrections to various mechanics' liens provisions enacted last year. The changes become effective on July 1, 2012, consistent with the effective date of SB 189 enacted last year. The bill also deletes a provision that intent to slander title is a circumstance under which a lien claim can be invalidated by a court, retaining simply intent to defraud. Also, a provision was added that the lien claim is forfeited if a person willfully includes in a lien claim labor, services, equipment or materials not furnished for the property described in the claim.
Marketable Title Act Revised
The Marketable Record Title Act was amended by SB 284 (Harman), a bill sponsored by CLTA at the request of the CLRC. The bill was signed by the Governor in order to clarify that record notice of an option expires six months after the expiration of the option, if that date is ascertainable from the recorded instrument, or, alternatively, six months after the recordation date of the instrument if the expiration date of the option cannot be ascertained from the instrument. The goal of the bill is to preclude the Marketable Record Title from allowing record notice of an option to purchase property to unnecessarily create a cloud on title after the option itself has become obsolete. The provisions of the new law become operative on January 1, 2013.
