TITLE 2. PRIVATE WORKS OF IMPROVEMENT [8160. - 8851.]
Title 2 added by Stats. 2010, Ch. 697, Sec. 20.
§§ 8160–8851 · 132 sections
CHAPTER 1. General Provisions §§ 8160–8190 · 10 sections
ARTICLE 1. Application of Title § 8160 · 1 section
- § 8160 This title applies to a work of improvement that is not governed by Title 3 (commencing with Section 9000) of this part.
ARTICLE 2. Construction Documents §§ 8170–8174 · 3 sections
- § 8170 (a) A written direct contract shall provide a space for the owner to enter the following information: (1) The owner’s name, address, and place of business, if…
- § 8172 (a) A public entity that issues building permits shall, in its application form for a building permit, provide space and a designation for the applicant to…
- § 8174 (a) A mortgage, deed of trust, or other instrument securing a loan, any of the proceeds of which may be used for a work of improvement, shall bear the…
ARTICLE 3. Completion §§ 8180–8190 · 6 sections
- § 8180 (a) For the purpose of this title, completion of a work of improvement occurs upon the occurrence of any of the following events: (1) Actual completion of the…
- § 8182 (a) An owner may record a notice of completion on or within 15 days after the date of completion of a work of improvement. (b) The notice of completion shall…
- § 8184 A notice of completion in otherwise proper form, verified and containing the information required by this title, shall be accepted by the recorder for…
- § 8186 If a work of improvement is made pursuant to two or more direct contracts, each covering a portion of the work of improvement: (a) The owner may record a…
- § 8188 (a) An owner may record a notice of cessation if there has been a continuous cessation of labor on a work of improvement for at least 30 days prior to the…
- § 8190 (a) An owner that records a notice of completion or cessation shall, within 10 days of the date the notice of completion or cessation is filed for record, give…
CHAPTER 2. Preliminary Notice §§ 8200–8216 · 9 sections
- § 8200 (a) Except as otherwise provided by statute, before recording a lien claim, giving a stop payment notice, or asserting a claim against a payment bond, a…
- § 8202 (a) The preliminary notice shall comply with the requirements of Section 8102, and shall also include: (1) A general description of the work to be provided.…
- § 8204 (a) A preliminary notice shall be given not later than 20 days after the claimant has first furnished work on the work of improvement. If work has been…
- § 8206 (a) Except as provided in subdivision (b), a claimant need give only one preliminary notice to each person to which notice must be given under this chapter…
- § 8208 A direct contractor shall make available to any person seeking to give preliminary notice the following information: (a) The name and address of the owner. (b)…
- § 8210 If one or more construction loans are obtained after commencement of a work of improvement, the owner shall give notice of the name and address of the…
- § 8212 An agreement made or entered into by an owner whereby the owner agrees to waive the rights conferred on the owner by this chapter is void and unenforceable.
- § 8214 (a) Each person who has served a preliminary notice may file the preliminary notice with the county recorder. A preliminary notice filed pursuant to this…
- § 8216 If the contract of any subcontractor on a particular work of improvement provides for payment to the subcontractor of more than four hundred dollars ($400),…
CHAPTER 3. Design Professionals Lien §§ 8300–8319 · 11 sections
- § 8300 For purposes of this chapter, a “design professional” is a person described in Section 8014 who provides services pursuant to a written contract with a…
- § 8302 (a) A design professional has, from the date of recordation of a claim of lien under this chapter, a lien on the site notwithstanding the absence of…
- § 8304 A design professional is not entitled to a lien under this chapter unless all of the following conditions are satisfied: (a) The work of improvement for which…
- § 8306 (a) On recordation of the claim of lien, a lien is created in favor of the named design professional. (b) The lien automatically expires and is null and void…
- § 8308 (a) Except as provided in subdivision (b), no provision of this part applies to a lien created under this chapter. (b) The following provisions of this part…
- § 8310 This chapter does not affect the ability of a design professional to obtain a lien for a work of improvement under Section 8400.
- § 8312 A design professional shall record a claim of lien under this chapter no later than 90 days after the design professional knows or has reason to know that the…
- § 8314 The creation of a lien under this chapter does not affect the ability of the design professional to pursue other remedies.
- § 8316 (a) No lien created under this chapter affects or takes priority over the interest of record of a purchaser, lessee, or encumbrancer, if the interest of the…
- § 8318 A design professional may not obtain a lien under this chapter for services provided for a work of improvement relating to a single-family, owner-occupied…
- § 8319 (a) A design professional may convert a recorded design professional lien to a mechanics lien if all of the following requirements are met: (1) The design…
CHAPTER 4. Mechanics Lien §§ 8400–8494 · 36 sections
ARTICLE 1. Who is Entitled to Lien §§ 8400–8404 · 3 sections
- § 8400 A person that provides work authorized for a work of improvement, including, but not limited to, the following persons, has a lien right under this chapter:…
- § 8402 A person that provides work authorized for a site improvement has a lien right under this chapter.
- § 8404 Work is authorized for a work of improvement or for a site improvement in any of the following circumstances: (a) It is provided at the request of or agreed to…
ARTICLE 2. Conditions to Enforcing a Lien §§ 8410–8424 · 6 sections
- § 8410 A claimant may enforce a lien only if the claimant has given preliminary notice to the extent required by Chapter 2 (commencing with Section 8200) and made…
- § 8412 A direct contractor may not enforce a lien unless the contractor records a claim of lien after the contractor completes the direct contract, and before the…
- § 8414 A claimant other than a direct contractor may not enforce a lien unless the claimant records a claim of lien within the following times: (a) After the claimant…
- § 8416 (a) A claim of mechanics lien shall be a written statement, signed and verified by the claimant, containing all of the following: (1) A statement of the…
- § 8422 (a) Except as provided in subdivisions (b) and (c), erroneous information contained in a claim of lien relating to the claimant’s demand, credits and offsets…
- § 8424 (a) An owner of real property or an owner of any interest in real property subject to a recorded claim of lien, or a direct contractor or subcontractor…
ARTICLE 3. Amount of Lien §§ 8430–8434 · 3 sections
- § 8430 (a) The lien is a direct lien for the lesser of the following amounts: (1) The reasonable value of the work provided by the claimant. (2) The price agreed to…
- § 8432 (a) A lien does not extend to work, whether or not the work is authorized by a direct contractor or subcontractor, if the work is not included in a direct…
- § 8434 A direct contractor or a subcontractor may enforce a lien only for the amount due pursuant to that contractor’s contract after deducting all lien claims of…
ARTICLE 4. Property Subject to Lien §§ 8440–8448 · 5 sections
- § 8440 Subject to Section 8442, a lien attaches to the work of improvement and to the real property on which the work of improvement is situated, including as much…
- § 8442 The following interests in real property to which a lien attaches are subject to the lien: (a) The interest of a person that contracted for the work of…
- § 8444 (a) An owner of real property or a person claiming an interest in real property on which a work of improvement is situated that did not contract for the work…
- § 8446 A claimant may record one claim of lien on two or more works of improvement, subject to the following conditions: (a) The works of improvement have or are…
- § 8448 (a) As used in this section, “separate residential unit” means one residential structure, including a residential structure containing multiple condominium…
ARTICLE 5. Priorities §§ 8450–8458 · 5 sections
- § 8450 (a) A lien under this chapter, other than a lien provided for in Section 8402, has priority over a lien, mortgage, deed of trust, or other encumbrance on the…
- § 8452 A mortgage or deed of trust, otherwise subordinate to a lien under Section 8450, has priority over a lien for work provided after recordation of a payment bond…
- § 8454 If a site improvement is provided for in a direct contract separate from the direct contract for the remainder of the work of improvement, the site improvement…
- § 8456 (a) This section applies to a construction loan secured by a mortgage or deed of trust that has priority over a lien under this chapter. (b) An optional…
- § 8458 (a) Except as provided in subdivision (b), a lien provided for in Section 8402 has priority over: (1) A mortgage, deed of trust, or other encumbrance that…
ARTICLE 6. Enforcement of Lien §§ 8460–8470 · 7 sections
- § 8460 (a) The claimant shall commence an action to enforce a lien within 90 days after recordation of the claim of lien. If the claimant does not commence an action…
- § 8461 After commencement of an action to enforce a lien, the plaintiff shall record in the office of the county recorder of the county, or of the several counties in…
- § 8462 Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce a lien is not brought to trial within two years after commencement of…
- § 8464 In addition to any other costs allowed by law, the court in an action to enforce a lien shall allow as costs to each claimant whose lien is established the…
- § 8466 If there is a deficiency of proceeds from the sale of property on a judgment for enforcement of a lien, a deficiency judgment may be entered against a party…
- § 8468 (a) This chapter does not affect any of the following rights of a claimant: (1) The right to maintain a personal action to recover a debt against the person…
- § 8470 In an action to enforce a lien for work provided to a contractor: (a) The contractor shall defend the action at the contractor’s own expense. During the…
ARTICLE 7. Release Order §§ 8480–8488 · 5 sections
- § 8480 (a) The owner of property or the owner of any interest in property subject to a claim of lien may petition the court for an order to release the property from…
- § 8482 An owner of property may not petition the court for a release order under this article unless at least 10 days before filing the petition the owner gives the…
- § 8484 A petition for a release order shall be verified and shall allege all of the following: (a) The date of recordation of the claim of lien. A certified copy of…
- § 8486 (a) On the filing of a petition for a release order, the clerk shall set a hearing date. The date shall be not more than 30 days after the filing of the…
- § 8488 (a) At the hearing both (1) the petition and (2) the issue of compliance with the service and date for hearing requirements of this article are deemed…
ARTICLE 8. Removal of Claim of Lien from Record §§ 8490–8494 · 2 sections
- § 8490 (a) A court order dismissing a cause of action to enforce a lien or releasing property from a claim of lien, or a judgment that no lien exists, shall include…
- § 8494 If a claim of lien expires and is unenforceable under Section 8460, or if a court order or judgment is recorded under Section 8490, the claim of lien does not…
CHAPTER 5. Stop Payment Notice §§ 8500–8560 · 22 sections
ARTICLE 1. General Provisions §§ 8500–8510 · 6 sections
- § 8500 The rights of all persons furnishing work for any work of improvement, with respect to any fund for payment of construction costs, are governed exclusively by…
- § 8502 (a) A stop payment notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, and shall be signed and verified by the…
- § 8504 A claimant that willfully gives a false stop payment notice or that willfully includes in the notice a demand to withhold for work that has not been provided…
- § 8506 (a) A stop payment notice to an owner shall be given to the owner or to the owner’s architect, if any. (b) A stop payment notice to a construction lender…
- § 8508 A stop payment notice is not valid unless both of the following conditions are satisfied: (a) The claimant gave preliminary notice to the extent required by…
- § 8510 (a) A person may obtain release of funds withheld pursuant to a stop payment notice by giving the person withholding the funds a release bond. (b) A release…
ARTICLE 2. Stop Payment Notice to Owner §§ 8520–8522 · 2 sections
- § 8520 (a) A person that has a lien right under Chapter 4 (commencing with Section 8400), other than a direct contractor, may give the owner a stop payment notice.…
- § 8522 (a) Except as provided in subdivision (b), on receipt of a stop payment notice an owner shall withhold from the direct contractor or from any person acting…
ARTICLE 3. Stop Payment Notice to Construction Lender §§ 8530–8538 · 5 sections
- § 8530 A person that has a lien right under Chapter 4 (commencing with Section 8400) may give a construction lender a stop payment notice.
- § 8532 A claimant may give a construction lender a stop payment notice accompanied by a bond in an amount equal to 125 percent of the amount of the claim. The bond…
- § 8534 (a) A construction lender that objects to the sufficiency of sureties on the bond given with a bonded stop payment notice shall give notice to the claimant of…
- § 8536 (a) Except as provided in subdivision (b), on receipt of a stop payment notice a construction lender shall withhold from the borrower or other person to whom…
- § 8538 (a) The claimant may make a written request for notice of an election by the construction lender under Section 8536 not to withhold funds. The request shall be…
ARTICLE 4. Priorities §§ 8540–8544 · 3 sections
- § 8540 (a) Funds withheld pursuant to a stop payment notice shall be distributed in the following order of priority: (1) First, to pay claims of persons that have…
- § 8542 Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop payment notice given to a construction lender by a direct contractor or…
- § 8544 The rights of a claimant who gives a construction lender a stop payment notice are not affected by an assignment of construction loan funds made by the owner…
ARTICLE 5. Enforcement of Claim Stated in Stop Payment Notice §§ 8550–8560 · 6 sections
- § 8550 (a) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice at any time after 10 days from the date the claimant…
- § 8552 If more than one claimant has given a stop payment notice: (a) Any number of claimants may join in the same enforcement action. (b) If claimants commence…
- § 8554 Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce payment of the claim stated in a stop payment notice is not brought to…
- § 8556 A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following…
- § 8558 (a) In an action to enforce payment of the claim stated in a bonded stop payment notice, the prevailing party is entitled to a reasonable attorney’s fee in…
- § 8560 If the claimant is the prevailing party in an action to enforce payment of the claim stated in a bonded stop payment notice, any amount awarded on the claim…
CHAPTER 6. Payment Bond §§ 8600–8614 · 9 sections
- § 8600 (a) This section applies if, before the commencement of work, the owner in good faith files a direct contract with the county recorder, and records a payment…
- § 8602 Section 8600 does not preclude an owner from requiring a performance bond, payment bond, or other security as protection against a direct contractor’s failure…
- § 8604 (a) If a lending institution requires that a payment bond be given as a condition of lending money to finance a work of improvement, and accepts in writing as…
- § 8606 (a) A payment bond under this title shall be conditioned for the payment in full of the claims of all claimants and shall by its terms inure to the benefit of…
- § 8608 (a) This title does not give a claimant a right to recover on a direct contractor’s payment bond given under this chapter unless the claimant provided work to…
- § 8609 Any provision in a payment bond attempting by contract to shorten the period prescribed in Section 337 of the Code of Civil Procedure for the commencement of…
- § 8610 Notwithstanding Section 8609, if a payment bond under this title is recorded before completion of a work of improvement, an action to enforce the liability on…
- § 8612 (a) In order to enforce a claim against a payment bond under this title, a claimant shall give the preliminary notice provided in Chapter 2 (commencing with…
- § 8614 Notice to the principal and surety under Section 8612 shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
CHAPTER 7. Security for Large Project §§ 8700–8730 · 13 sections
ARTICLE 1. Application of Chapter §§ 8700–8704 · 3 sections
- § 8700 (a) This chapter applies if any of the following conditions is satisfied: (1) The owner of the fee interest in property contracts for a work of improvement on…
- § 8702 This chapter does not apply to any of the following works of improvement: (a) A single-family residence, including a single-family residence located within a…
- § 8704 This chapter does not apply to any of the following owners: (a) A qualified publicly traded company or a wholly owned subsidiary of a qualified publicly traded…
ARTICLE 2. Security Requirement §§ 8710–8716 · 4 sections
- § 8710 An owner described in subdivision (a) of Section 8700 shall provide the direct contractor all of the following: (a) Security for the owner’s payment obligation…
- § 8712 If an owner fails to provide or maintain the security required by this chapter, the direct contractor may give the owner notice demanding security. The notice…
- § 8714 It is against public policy to waive the provisions of this chapter by contract.
- § 8716 This chapter does not affect any statute providing for mechanics liens, stop payment notices, bond remedies, or prompt payment rights of a subcontractor,…
ARTICLE 3. Form of Security §§ 8720–8730 · 6 sections
- § 8720 An owner shall provide security by any of the following means: (a) A bond that satisfies Section 8722. (b) An irrevocable letter of credit that satisfies…
- § 8722 A bond under this chapter shall satisfy all of the following requirements: (a) The bond shall be executed by an admitted surety insurer that is either listed…
- § 8724 An irrevocable letter of credit under this chapter shall satisfy all of the following requirements: (a) The letter of credit shall be issued by a financial…
- § 8726 An escrow account under this chapter shall satisfy all of the following requirements: (a) The account shall be designated as a “construction security escrow…
- § 8728 The following provisions govern a deposit to or disbursement from a construction security escrow account under this chapter: (a) Before the commencement of…
- § 8730 If the contract price for a work of improvement is not a fixed price, the amount of security provided under this chapter shall be the guaranteed maximum price…
CHAPTER 8. Prompt Payment §§ 8800–8851 · 22 sections
ARTICLE 1. Progress Payment §§ 8800–8802 · 2 sections
- § 8800 (a) Except as otherwise agreed in writing by the owner and direct contractor, the owner shall pay the direct contractor, within 30 days after notice demanding…
- § 8802 (a) This section applies to a contract between a public utility and a direct contractor for all or part of a work of improvement. (b) Unless the direct…
ARTICLE 2. Retention Payment §§ 8810–8822 · 8 sections
- § 8810 This article governs a retention payment withheld by an owner from a direct contractor or by a direct contractor from a subcontractor.
- § 8811 (a) This section is applicable to a contract relating to a private work of improvement entered into on or after January 1, 2026. (b) (1) (A) A retention…
- § 8812 (a) If an owner withholds a retention from a direct contractor, the owner shall, within 45 days after completion of the work of improvement, pay the retention…
- § 8814 (a) If a direct contractor has withheld a retention from one or more subcontractors, the direct contractor shall, within 10 days after receiving all or part of…
- § 8816 (a) If the direct contractor gives the owner, or a subcontractor gives the direct contractor, notice that work in dispute has been completed in accordance with…
- § 8818 If an owner or direct contractor does not make a retention payment within the time required by this article: (a) The owner or direct contractor is liable to…
- § 8820 It is against public policy to waive the provisions of this article by contract.
- § 8822 This article does not apply to a retention payment withheld by a lender pursuant to a construction loan agreement.
ARTICLE 3. Stop Work Notice §§ 8830–8848 · 10 sections
- § 8830 “Stop work notice” means notice given under this article by a direct contractor to an owner that the contractor will stop work if the amount owed the…
- § 8832 If a direct contractor is not paid the amount due pursuant to a written contract within 35 days after the date payment is due under the contract, and there is…
- § 8834 A direct contractor that gives an owner a stop work notice shall give the following additional notice: (a) At least five days before giving the stop work…
- § 8836 Within five days after receipt of a stop work notice from a direct contractor, the owner shall give a copy of the notice to the construction lender, if any.…
- § 8838 (a) The direct contractor or the direct contractor’s surety, or a subcontractor or a subcontractor’s surety, is not liable for delay or damage that the owner…
- § 8840 On resolution of the claim in the stop work notice or the direct contractor’s cancellation of the stop work notice, the contractor shall post, and give…
- § 8842 A direct contractor’s right to stop work under this article is in addition to other rights the direct contractor may have under the law.
- § 8844 (a) If payment of the amount claimed is not made within 10 days after a stop work notice is given, the direct contractor, the direct contractor’s surety, or an…
- § 8846 It is against public policy to waive the provisions of this article by contract.
- § 8848 (a) This article applies to a contract entered into on or after January 1, 1999. (b) This article does not apply to a retention withheld by a lender pursuant…
ARTICLE 4. Claims and Disputes §§ 8850–8851 · 2 sections