Insurance & LiensQuestion 1470 of 1605

The California 'Preliminary Notice' (often called the 20-day notice) must generally be served within 20 days after the claimant first furnishes labor or materials. What is the primary consequence of serving it late?

a.The claimant permanently loses all lien rights for the entire project
b.The claimant must double the notice period to 40 days
c.The claimant may still lien for the full contract amount
d.The lien and stop payment notice rights are limited to work provided within 20 days before the notice is given, and thereafter

Explanation

Under Civil Code §8204, a preliminary notice given late still preserves lien/stop-notice rights, but only for work furnished within 20 days before service of the notice and afterward — the claimant loses rights for earlier work. Serving on time protects the full claim.

Law Reference: Civ. Code §8200

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