AMOUNT STATED ON MECHANIC’S LIEN

AMOUNT STATED ON MECHANIC’S LIEN

 

Under California Law the amount stated on your Mechanic’s Lien  must be for the reasonable value of labor and/or materials actually supplied and incorporated into the work of improvement.

You are also entitled to request interest at the rate of 10% from the date that the money is owed to you.

You do not calculate and add interest to the principal amount of your claim. Interest is something that you note the date the interest accrues from at the rate of 10% per annum. You do not add the cost of preparing and recording your Mechanic’s Lien to the principal amount of your Mechanic’s Lien.

From a legal stand point if you file a lawsuit to foreclose your Mechanic’s Lien, you are legally entitled to recover the reasonable value of your labor and/or materials actually incorporated into the work of improvement. You are legally entitled to recover interest at the legal rate of 10% per annum and you are legally entitled to recover the cost of preparing and recording your Mechanic’s Lien and Release of Mechanic’s Lien once you send or take your case
to trial.

The time to request the cost associated with preparing and recording a Mechanic’s Iien and possibly releasing a Mechanic’s lien, is when you negotiate settlement with the property owner or when you prevail at trial.

Master Liens will record your Mechanic’s Lien for the dollar amount that you provide to them, however, if you intentionally overstate the amount on your Mechanic’s Lien, a judge can void or reduce your Mechanic’s Lien 10 the correct amount. Only you can determine the amount to be stated on your Mechanic’s Lien.
Please do not ask Master Liens to calculate the reasonable value of your services interest or cost.

Resolution of Construction Disputes