Insurance & LiensQuestion 679 of 690

A material supplier delivers $40,000 of lumber to a private construction project on July 1. To fully preserve mechanics' lien, stop payment notice, AND payment bond claim rights, the supplier must serve a preliminary notice under Civil Code §8200 on the owner, direct contractor, and construction lender no later than:

a.20 days after the date of recording the deed of trust
b.20 days after the date the owner records a notice of commencement
c.20 days after the supplier first furnishes labor, service, equipment, or materials to the project — meaning notice must be SERVED by approximately July 21 to fully protect all back-dated rights
d.20 days after the supplier issues the first invoice for the materials

Explanation

Civil Code §8200 requires every claimant other than the direct contractor and wage-laborers to serve preliminary notice on the owner/reputed owner, direct contractor, and construction lender (if any) not later than 20 days after the claimant FIRST FURNISHES labor, service, equipment, or materials. Late service is permitted but limits lien and stop-payment-notice rights to work/materials furnished in the 20 days BEFORE service and thereafter (Civil Code §8204). The 20-day clock runs from first delivery, not from invoice date, deed recording, or notice of commencement. Service must be by registered/certified/first-class mail with proof of service affidavit under §8108–§8118.

Law Reference: Civil Code §8200

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