Law Revision Commission Recommendation
Tuesday, November 15, 2016
Law Revision Commission Revised Recommendation on Mechanics Liens in HOAs
In October, the California Law Revisions Commission (CLRC) released its revised tentative recommendation on mechanics’ liens and common interest developments. Once the final recommendation is approved by the Commission, it may be introduced in the upcoming legislative session.
The CLRC’s prior tentative recommendation proposed three improvements to existing law:
- Provide that the association is the agent for receipt of mechanics’ lien notices and claims for a work of improvement on common area within a common interest development.
- Require that the association give notice to its members when served with a claim of lien.
- Generalize existing Civil Code Sections addressing authorization of work on common area in condominium projects so that they apply to all common interest developments and not just condominiums.
The October recommendation reflects public comments received by the Commission and made two substantive changes to the proposal:
- When an association gives notice of a claim of lien, it should be required to use “individual delivery” methods, rather than “general delivery” methods.
- Revise Civil Code Sections 4615 and 6658 to expressly permit the use of a lien release bond to remove an owner’s property from a recorded mechanics’ lien claim.