If a homeowner stops paying and work has halted for 60 days, what should the contractor do next?

If a homeowner stops paying and work has halted for 60 days, what should the contractor do next?

• A. File a lien immediately
• B. Send the homeowner a Notice of Mechanics Lien form with an unfiled copy of the lien claim
• C. Sue in small claims court
• D. Terminate the contract

Answer: (B)

Preserving lien rights is the first protective step when payment stops and work halts. In California, the contractor should serve a Notice of Mechanics Lien on the homeowner, and include a copy of the lien claim that hasn’t yet been filed. This formally informs the owner that a lien may be pursued if the debt remains unpaid and shows the exact amount and basis of the claim. It also satisfies the procedural requirements to protect the right to file a lien later. Filing a lien immediately without this notice can jeopardize the lien and the ability to enforce it. Suing in small claims isn’t the typical remedy for a real-property lien, since a mechanics lien is a property-based claim that ultimately involves recording with the county and often court action. Terminating the contract may be a possibility in some situations, but it does not secure lien rights or address payment in the same protective way as sending the notice with the unfiled lien claim.

Preserving lien rights is the first protective step when payment stops and work halts. In California, the contractor should serve a Notice of Mechanics Lien on the homeowner, and include a copy of the lien claim that hasn’t yet been filed. This formally informs the owner that a lien may be pursued if the debt remains unpaid and shows the exact amount and basis of the claim. It also satisfies the procedural requirements to protect the right to file a lien later. Filing a lien immediately without this notice can jeopardize the lien and the ability to enforce it. Suing in small claims isn’t the typical remedy for a real-property lien, since a mechanics lien is a property-based claim that ultimately involves recording with the county and often court action. Terminating the contract may be a possibility in some situations, but it does not secure lien rights or address payment in the same protective way as sending the notice with the unfiled lien claim.