Do I have to file a preliminary notice within the 20 days ?
If :
- I contracted the home owner
- I have been paid from his personal check
I have no information that he has a bank loan on the property (He may have)
1 reply
Dec 19, 2019
When hired directly by the property owner, a contractor will only have to send preliminary notice if there's a lender on the project. Of course, it's tough to know whether there's a lender on the job unless that lender is directly making payments to someone providing work on the job.
For more information on California's notice requirements: California Preliminary Notice Guide and FAQs.
How can a contractor tell if there's a lender on a California construction project?
In order to determine if there was a lender funding the job, it might be helpful for a contractor to ask the property owner outright. There's little reason for an owner to hide the fact that there's a lender on the job - particularly if there have been no payment issues to date and if the job is paid in full. What's more, a contractor could also provide a preliminary notice to the owner, and if the owner receives a prelim from their contractor, that owner would then be required to disclose any lender who's come onto the job after the project commenced (as set out by California Civil Code § 8210).
Ultimately, though, if there is a lender and the owner continues to hide the existence of the lender even after their contractor has requested the lender's info (as applicable) - then it'd seem unlikely that an owner would then be entitled to reap the benefits of hiding the lender (i.e. the loss of certain payment rights). That'd be pretty unjust.
As a bottom line, though: If an owner confirms that there's no lender on the job, and if the owner has made full payment, then there may not be much for a contractor to worry about anyway.