Insurance & LiensQuestion 1500 of 1632

A material supplier who furnishes materials to a subcontractor (not to the owner directly) preserves its mechanics lien rights by serving a preliminary notice on:

a.Only the subcontractor that ordered and received the materials
b.The subcontractor and the direct contractor, but not the owner
c.The owner, the direct contractor, and any construction lender
d.The owner alone, since the lien attaches to the owner's property

Explanation

Having no direct contract with the owner, the supplier falls under Civil Code §8200 and must serve the owner or reputed owner, the direct contractor, and the construction lender if there is one. (a) is the error suppliers actually make — notifying the customer they invoiced, which preserves nothing. (b) stops one link short of the owner, and the owner is the party whose property is at risk. (d) is incomplete in the way that costs the most: without notice to the lender the supplier loses the bonded stop payment notice against undisbursed loan funds.

Law Reference: Civil Code §8200

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