What is a Preliminary Notice?
When our office is asked to record a mechanics lien on behalf of a client, one of the first questions we ask is, “Did you send a Prelim?” This often overlooked procedure is critical to secure lien rights.
In California, subcontractors and suppliers must serve a preliminary notice in order to preserve their right to file a mechanics lien in the future. This “Preliminary 20-day Notice”, as it’s commonly called, must be served on the owner, general contractor and, if applicable to the project, the construction lender.
If you are a subcontractor or supplier, you should be serving a Preliminary Notice within 20 days of first providing labor or materials. If you don’t, you are at risk of losing your lien rights and significant leverage in getting paid.
Stelmach & Stelmach, LLP can assist you with serving preliminary notices and recording of the mechanics lien.