Insurance & LiensQuestion 1504 of 1632

A claimant recorded a mechanics lien and did nothing further for four months. What is the status of the lien?

a.It has become a judgment lien against the owner's property
b.It has expired, no action having been filed in 90 days
c.It remains enforceable for a year from the recording date
d.It has converted itself into a stop payment notice

Explanation

Civil Code §8460(a) requires the claimant to commence an action to enforce the lien within 90 days after the claim of lien is recorded, and provides that the lien otherwise expires and is unenforceable; four months is past the deadline. (c) uses a real figure from the wrong subdivision: §8460(b) extends the deadline only where the claimant and owner agreed to extend credit and recorded notice of it, and even then no later than one year after completion. (a) and (d) invent conversions the statute does not provide — a judgment lien needs a judgment, and a stop payment notice is a separate remedy that must be given while undisbursed funds remain.

Law Reference: Civ. Code §8460(a)-(b)

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