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Articles > Construction law in California

How to Extend the Life of a Mechanics’ Lien

by William L. Porter, Attorney at Law

Although the general rule is that an action to foreclose on the mechanics’ lien must be filed within 90 days after the lien has been recorded at the County Recorder’s office where the property is located, it is possible to extend this 90-day deadline. Civil Code section 3144 describes the means to do so. Section 3144 states:

3144. (a) No lien provided for in this chapter binds any property for a longer period of time than 90 days after the recording of the claim of lien, unless within that time an action to foreclose the lien is commenced in a proper court, except that, if credit is given and notice of the fact and terms of such credit is recorded in the office of the county recorder subsequent to the recording of such claim of lien and prior to the expiration of such 90-day period, then such lien continues in force until 90 days after the expiration of such credit, but in no case longer than one year from the time of completion of the work of improvement.

(b) If the claimant fails to commence an action to foreclose the lien within the time limitation provided in this section, the lien automatically shall be null and void and of no further force and effect.

Note: This “Notice of Credit” document must be signed by the owner before a notary and properly recorded at the office of the County Recorder where the property is located. A simple letter from the owner will not suffice. The recorded Notice of Credit also will not extend the lawsuit deadline any longer than one year from the date of actual completion of the work of improvement. It is recommended that the Notice of Credit be used extremely sparingly. In most cases it does not result in any real benefit to the claimant and only delays payment further and/or provides the owner with additional time to try to determine some means to defeat the collection efforts of the claimant.

William L. Porter is a principal in Porter Law Group, Inc. in Sacramento, California.
He can be reached at (916) 381-7868.