Insurance & LiensQuestion 1538 of 1632

To keep a mechanics lien alive beyond 90 days without immediately filing suit, a claimant and owner may agree to and record an:

a.Assignment of the lien to the construction lender holding the loan
b.Extension of credit, extending time to sue up to a year
c.Amendment increasing the lien to include interest accruing meanwhile
d.Acknowledgement of debt, which restarts the 90 days from signing

Explanation

Civil Code §8460 requires an action to enforce a lien within 90 days after recording, unless a notice of credit is recorded extending the time — and in no event may the action be brought more than one year after recording. (a) transfers the claim without touching the deadline; an assignee inherits the same clock. (c) confuses the amount with the time limit, and inflating a lien invites the §8422 overstatement problem. (d) imports a debt-acknowledgement rule from the statute of limitations, which does not restart the mechanics lien deadline.

Law Reference: Civil Code §8460

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