The first steps of this lesson
Step 1: A Lien Is a Claim on Property; a Stop Notice Is a Claim on Funds
The California Constitution (Art. XIV, Section 3, quoted in the Reference Book, Section III) gives mechanics, material suppliers, artisans, and laborers a lien on the property they improved. A mechanics lien is a lien on property; a stop notice is a lien on funds, and you may use one or both. On public works you cannot file a mechanics lien, so a stop notice may be your only remedy. To perfect a lien the work or materials must be incorporated into the structure (installed), and a material supplier's own supplier has no statutory lien. The Reference Book warns that the time limits are short and the requirements strict.
Step 2: Step One: The 20-Day Preliminary Notice
Per the Reference Book's Mechanics Lien and Stop Notice Checklist, a subcontractor or material supplier must serve a Preliminary 20-day Notice on the owner, the original contractor, and the construction lender within 20 days from first furnishing labor or materials. Only one notice is required no matter how many deliveries are made. Serve it by first class certified or registered mail, return receipt requested, or by personal delivery, and keep the post office receipts to prove service. The notice may also be filed with the county recorder, who then reports a Notice of Completion or Cessation. Prime contractors and laborers do not send one; B&P Code 7159(e)(4) tells owners the law assumes they already know those people improve the property.
The remaining 3 steps, the worked example and the quiz are in the course. This is a preview. The full lesson, with the step-by-step explanations, a worked example and a quick-check quiz, is inside the classroom.
Independent exam preparation. Contractors Classroom is not affiliated with the Contractors State License Board, and no course can guarantee a passing result.