Applies to the State of California
What is a Preliminary Notice/20 Day Notice?
Anyone doing improvements to property (repairs or new construction) working directly for anyone other than the owner of the property must file a Notice to Owner in order to file a Lien. Should you not file a Notice to Owner and not have the certified receipt (green card) back in your possession within 45 days of the job start, you may lose your right to lien the job should you not be paid.
How can a Preliminary Notice/20 Day Notice protect you and your business?
Owner pays the General Contractor but the Contractor does not pay you. Filing a NTO lets the owner know that you are working on the job and the owner will then secure a release from the General Contractor for each progress payment ensuring that you get paid…..timely.
Owner does not Pay the General Contractor who then cannot pay you. Filing an NTO within the time allowed ensured your right to Lien the job securing your receivables. Should you not be paid by the Owner at that point, you may then foreclose on the Lien compelling the Owner to sell his interest in the property at a judicial sale to satisfy his debt to you.
Person who hires you claims to be the Owner but is actually a Leaseholder. Filing an NTO allows us to investigate who the true owner of the property is and notify them of your work on the property ensuring your
lien rights and to make sure that the Leaseholder will pay your bill.
There are THREE Important Deadlines that you must know:
- 20 Days to Send a Notice to Owner
- Contractors: within 60 days of last day of work
- Subs and Material Suppliers: Within 90 days
- 1 Year from the last day you were on the property to lien the property