AB 534 (Gallagher). Common interest developments: mechanics liens.

Justice for Workers

Would prohibit a mechanics lien from being filed against an other owner in the common interest development unless consent was provided or a request was made, except in the case of emergency repairs. Would deem the association to be an agent of the owners of separate interests in the common interest development with respect to work on a common area.

Current Status: Chaptered

FindHOALaw Quick Summary:

The California Constitution establishes a lien upon a property for the value of labor and materials for work completed on that property.  In a condominium project, the Davis-Stirling Act and the Commercial and Industrial Common Interest Development Act prohibit a mechanics lien for work completed at the request of an owner, from being filed against any other property of any other owner unless that owner expressly consented to or requested the work to be completed, except in the case of emergency repairs.  An owner may remove his or her condominium from a lien against two or more units by paying to the lienholder the prorated share that is attributable to that owner’s  unit, or recording a lien release bond in an amount equal to 125% of the sum secured by the lien that is attributable to that owner’s unit. This bill would amend Civil Code Sections 4615 and 6658 to apply to all common interest developments and their separate interests.

Work performed on the common area, if authorized by the association, would be deemed to have been performed with the express consent of the owners of the separate interests.  This bill would add Civil Code Sections 4620 and 6660 to require the association give individual notice to the membership of a claim of lien within 60 days of service.

Finally, this bill would add Civil Code Section 8119 to provide that the association is deemed to be an agent of the owners of the separate interests for work performed on the common area for purposes of delivery or service of a notice of claim.

**UPDATE: AB 534 was signed by the Governor on July 10, 2017. Its changes to the law will become operative on January 1, 2018. 

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from the California Legislature's website