By Bert Sandman
Chair, California Contractors State License Board
Q: What is a mechanic’s lien and does it apply to the
landscaping of my backyard and my gazebo installation?
By Bert Sandman
Chair, California Contractors State License Board
Q: What is a mechanic’s lien and does it apply to the landscaping of my backyard and my gazebo installation?
A: Mechanic liens are applicable to everyone doing a home improvement project involving contractors and subcontractors. When you hire a general contractor to do work on your home, he or she typically hires subcontractors for some of the work, and purchases materials from outside suppliers. If the contractor, subcontractors or suppliers who provide goods or services to improve your property aren’t paid, they can file what is called a mechanic’s lien on your home.
A mechanic’s lien is a “hold” against your property that, if unpaid, allows a foreclosure action, forcing the sale of your home. The unpaid contractor, subcontractor or supplier records it with the County Recorder’s office. It means that any of these unpaid entities can claim a lien against the property until they are paid. Most problems occur when the homeowner pays the prime contractor for all or some of the work, but the prime contractor fails to pay the subcontractors and/or materials suppliers. You can protect yourself from liens by carefully selecting your contractor and responsibly managing your construction project. Following these tips should protect you:
– Check with your local courthouse to see if the prime contractor has a history of litigation.
– Get your prime contractor to give you a list of all subcontractors, and materials suppliers they will be using.
– Check with those subcontractors and suppliers and ask them if they’ve had problems with the contractor paying them.
– Before you make a payment, get a signed conditional lien release from the subcontractor and/or materials supplier. After getting that release, make the appropriate payment for the work that was done. Write payment checks to both the prime contractor and the materials supplier or subcontractor.
– After you pay, the contractor should get you an unconditional release signed by each of the claimants paid for the portion of the work being released. Make sure that the actual claimant signs the unconditional release. Learn more in the CSLB publication, A Homeowner’s Guide to Preventing Mechanic’s Liens, available on the CSLB Web site at www.cslb.ca.gov.
Q:I hired a licensed landscaper to work on my backyard. But instead, he took my final payment and didn’t finish the work in the contract. I have called him multiple times, but he says he won’t fix the yard because he “didn’t do anything wrong.” I want my money back, what can I do?
A:Since you hired a licensed contractor, you do have recourse through the CSLB. However, this doesn’t guarantee you’ll get your money back. Since that is your goal, your best option might be to consult with an attorney about small claims court. If you are considering recovering damages less than $7,500, the CSLB can provide you with information about filing a claim in small claims court or you can consult the clerk at small claims court for assistance.
If you want to file a more monetarily substantial claim, then an attorney is the best way to go. If you want information on how to file a complaint against the contractor, you can visit the CSLB Web site at www.cslb.ca.gov and click on “Filing a construction complaint.”
Q:A contractor came to my door yesterday and offered a free roof inspection. I believed him when he said I needed a new roof, so I agreed. I signed a contract, but I am having second thoughts. Is there anything I can do to get out of the contract?
A:Yes, but you must move quickly. The California’s Home Solicitation Sales Act allows you to cancel the contract by midnight of the third business day after the document was signed. This includes all days except Sunday and most major holidays. The purpose here is to protect consumers from the pressure they often feel to make an immediate purchasing decision from someone going door-to-door.
Unless the contract is negotiated at the contractor’s place of business, the buyer qualifies for the three-day right to cancel. The notice must be in writing and can be a letter, telegram or even a FAX sent to the address specified in the contract or offer. You need to be sure you express your intent not to be bound by the contract or offer.
This is an excellent example of why you should never feel pressured into signing a home improvement contract, especially when someone shows up at your front door. You should get at least three bids for any home improvement project. That gives you the opportunity to compare costs and to verify that the contractors are licensed. You should also be skeptical anytime someone shows up at your front door saying they’ve got materials left over from another job and will give you a big discount.
Bert Sandman is the Chair of the Contractors State License Board. The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. The CSLB licenses and regulates California’s 299,000 contractors, and investigates more than 20,000 complaints against contractors annually. In fiscal year 2004-05, the CSLB helped consumers get more than $36 million in restitution. For more information, or to check out a contractor’s license, bond and workers’ compensation insurance information, visit the CSLB Web site at www.cslb.ca.gov.
