Contracts & ExecutionQuestion 66 of 1632

A contractor must provide an owner with a "Notice to Owner" (preliminary notice) primarily to:

a.Notify the owner that a stop payment notice has been recorded
b.Meet a condition of the permit issued for the work site
c.Preserve the right to record a mechanics' lien if not paid
d.Extend the 90-day deadline for recording the lien

Explanation

Civil Code §8200 makes the preliminary notice a condition of lien rights: give it and the claimant may record a mechanics' lien if the bill goes unpaid; skip it and the lien is lost no matter what the work was worth. It is not a demand for payment and not a stop payment notice - that is the separate remedy served to freeze undisbursed construction funds. The building permit is issued by the building department for code compliance and has nothing to do with it. And the notice buys no time: the 90-day window to record a lien after completion runs on its own schedule under §8412.

Law Reference: Civil Code §8200; §8412

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