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Use A Preliminary Lien Notice Service
STOP risking your lien rights and stop putting
through the prelim paperwork
Hire a preliminary lien Service company that will PERFECT and PROTECT your MECHANIC'S
LIEN and BOND CLAIM RIGHTS.
Read here about what to look for when
checking out a preliminary lien service.
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Consider hiring a preliminary lien service that researches,
perfects and protects your mechanic's lien rights for you. What's
neat about these companies is they already have in place the resources needed
to verify the information you provide and if they find something
incorrect, they correct it.
If you don't have the time to devote to researching construction
trust deeds and such (verification processes are very time consuming
and expensive), then using a preliminary lien service company
to protect your lien and bond claim rights may be just the ticket
Normally, it's set up so that you pay a fee for
their service plus all postage expenses. Because the agency is focused
on filing preliminary notices as their business, they
can usually do it at a much lower cost than you can do it yourself.
What about mistakes?
Ask your potential provider what happens
if they make a mistake, be it in their research, or a typo, or not
tracking receipt of the notices, or whatever mistake they make.
If your service provider makes a mistake and doesn't prelim the correct
entities, and then the job runs into problems and you don't get
paid, and you can't file a lien because the California 20-Day preliminary notice was
processed incorrectly by your service provider, will your service
provider make good on their mistake(s)! (meaning: will they
pay you what you lost due to their mistakes?)
The first time I used a preliminary lien notice service company, I had a huge
shock. I sent the job info to them, including contact information
for the two parties that needed to be "prelim'd" on the
project. This was information that the General Contractor on the job had provided to us.
Imagine my surprise when they came back with FIVE different financially involved entites
on the project!
All five of these entities had to be prelim'd,
and if they had not been, we could have ended up in trouble and without lien rights.
Plus, in California, a subcontractor can face disciplinary action for not serving
a preliminary notice!!
Without the preliminary lien service provider, we very well may have found ourselves
in trouble with the law (not to mention we'd have lost our lien
When looking into California 20-Day preliminary lien service providers, make sure
you look hard at these points:
* What does it cost to process a preliminary notice?
* Is the fee per notice (ie: 5 entities incurs 5 times the price)
or per project (lump sum no matter how many entities)?
* How are the postage fees handled?
When doing the preliminary notices myself it would take me a minimum of 2 hours just to do all the paperwork and that doesn't include any of my research time spent making sure I was serving the right people. If you include that time as well we could be looking at potentially 5+ hours depending on the scope of the project, the number of folks that have to be prelim'd, etc.
At $20 per hour that would be $100 for one project AND I wouldn't ever be absolutely 100% certain that I was preliming all of the parties that needed to be.
When using the preliminary lien notice service I would pay less than that to have them
not only process the paperwork but also to research & process the notice (no matter how many entities
need to receive a copy). They have many more resources at their fingertips than I do because this is what they do, preliminary notices.When I did it myself, it would take me a minimum
of two hours to process the notice.
A plus with using a preliminary lien service agency is that you
may have access to a free consultation with an attorney (if
the agency has this benefit available), should you run into problems
on the job, such as someone not paying you.
There are several ways to process your California 20-Day preliminary notices; only
you can decide which works best for you. For those times that you
choose to process the preliminary notice yourself, the next
page (5) consists of an outline of how we handled our preliminary
notices whenever we didn't use our service provider.
(Please note that we are NOT necessarily recommending
that you manage the prelim notices yourself. It's your choice how you do it but do consider a reputable preliminary lien service company. At least check them out and compare what it would cost to have them do it vs. what it costs to do it yourself.)
Part 1 - Process your California 20-Day Preliminary Notice or lose out on your lien rights!
Part 2 - Researching and verifying preliminary notice information
Part 3 - Software can help you process preliminary notices super-quick! <-- No longer available
Part 4 - Outsourcing your preliminary notices
Part 5 - Processing preliminary notices using the form available here
Part 6 - Don't let a slip-up at the post office cause you to lose your rights
Part 7 - Mistaken Identity - by Attorney Dave Barnier...
Part 8 - Some common mistakes you MUST avoid !!
Part 9 - LienLawOnline is a valuable asset to add to your library of helpful sites
Thank you for visiting our site. I hope that this
series of articles is helpful to you! I'm always happy to receive
feedback, so please
do send me a note if you have anything you'd like to tell me.
Thank you!! :o)
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