How to Challenge a Mechanics Lien: A Property Owner's Defense Guide

Five ways to fight back when a contractor records a lien on your property

A contractor just recorded a mechanics lien on your property for $102,000. You're convinced you don't owe it—or at least not that much.

What do you do?

Recently I analyzed a mechanics lien case where the contractor's lien had multiple vulnerabilities. The owners could have challenged it on at least three grounds. Here's what I learned about defending against mechanics liens.

Understanding What You're Up Against

A mechanics lien is serious. It:

• Clouds your property title
• Prevents you from selling or refinancing
• Can lead to foreclosure of your property
• Accrues interest while unpaid

But mechanics liens are not automatic wins for contractors.

California law has strict requirements. If the contractor missed something, the lien fails. And even if the lien is valid, the amount might be wrong.

Here are your defense options.

Defense #1: The Contractor Missed a Deadline

This is your strongest defense because it's black-and-white.

California gives contractors two 90-day deadlines. Miss either one and the lien is worthless.

Check Deadline #1: Was the Lien Recorded on Time?

The Rule: Contractor must record lien within 90 days after completing work (Civil Code § 8414).

If you recorded a Notice of Completion, the contractor only gets 60 days.

How to check:

1. When did the contractor finish all their work?
2. When was the lien recorded? (Check the recorded date on the lien document)
3. Count the days between completion and recording

If it's more than 90 days (or 60 days if you filed Notice of Completion), the lien is invalid.

Check Deadline #2: Was the Lawsuit Filed on Time?

The Rule: Contractor must file foreclosure lawsuit within 90 days after recording the lien (Civil Code § 8460).

How to check:

1. When was the lien recorded? (Check county records)
2. When was the lawsuit filed? (Check court records)
3. Count the days

If it's more than 90 days, the lien is expired and unenforceable.

Real Example

In the case I analyzed:

• Lien recorded: August 7, 2025
• Lawsuit filed: November 3, 2025
• Days: 88 (within the 90-day deadline)

The contractor filed with two days to spare. If they had filed on November 6, the owners could have dismissed the entire case immediately.

Your action: Get the dates and count carefully. One day matters.

Defense #2: The Amount Is Exaggerated

This defense can reduce—or completely eliminate—the lien.

California law, Civil Code Statutes, state if a contractor willfully includes work not furnished or exaggerates the amount, they forfeit the entire lien.

Not just the excess. The entire lien.

How to Spot an Exaggerated Lien

Compare the lien amount to:

• The original contract price
• What you've already paid
• What work was actually completed

In my case example:

• Contract: $463,600 total
• Payment schedule: Six installments
• One installment: $77,267
• Lien amount: $102,413
• Excess: $25,146

Question: Where did the extra $25K come from?

Check for Unauthorized Extras

Look at your contract. Does it say something like:

"Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders."

If yes, the contractor can ONLY charge for extras if:

• You approved them in writing
• Before the work was done

Your defense:

• Did you sign written change orders?
• Do you have emails authorizing the extra work?
• Did you agree to the price?

If the answers are no, the contractor can't collect for extras—and including them in the lien might invalidate the entire lien.

Check for Work Not Actually Done

Walk your property with the lien in hand:

• Is all the work listed in the lien actually completed?
• Are there items they claim credit for that they didn't finish?
• Did they list materials they didn't provide?

Document everything:

• Take photos of incomplete work
• List specific items in the lien that weren't done
• Get estimates for cost to complete

If the contractor willfully included work they didn't do, the entire lien can be invalidated.

Demand a Breakdown

You have the right to demand the contractor provide:

• Detailed invoice showing all work
• Dates work was performed
• Materials provided with costs
• Labor hours and rates
• Breakdown of any extras claimed

If they can't document it, they can't collect it.

Defense #3: You Never Agreed to That Payment Schedule

This challenges the basis of the lien amount.

In my case example, the contractor claimed six equal installments of $77,267 each. But the one-page contract said only:

"Payment will be made as outlined above"

Problem: Nothing was outlined above. No payment schedule at all.

Your Defense

If the contract doesn't specify the payment schedule:

• The contractor can't just make one up later
• They need proof you agreed (emails, invoices, course of dealing)
• They need to show when payment was actually due

Challenge questions:

• Where does the contract say six installments?
• When was each installment due?
• What triggered each payment?
• Do you have proof I agreed to this schedule?

If they can't prove the payment schedule, they can't prove the amount is due and owing.

The Installment Trap

Some contractors claim:

• "Fifth payment is due"
• But the contract doesn't say when each payment is due
• Or what has to be completed to trigger payment

Your defense: Payment wasn't due yet because:

• Work wasn't completed to trigger that payment
• The installment wasn't properly invoiced
• The payment schedule was never agreed to

Defense #4: The Work Is Defective or Incomplete

This gives you an offset against the lien amount.

If the contractor:

• Didn't finish the work
• Did defective work that needs repair
• Damaged your property
• Left the job incomplete

You may have a counterclaim for:

• Cost to complete the work
• Cost to repair defective work
• Damages from delay

How to Document Defects

Take action immediately:

1. Photograph everything
   • All defective work
   • All incomplete work
   • Any damage to your property
   • Date stamp the photos
2. Get repair estimates
   • Hire another contractor to inspect
   • Get written estimates to complete/repair
   • Document what needs to be done
3. Create a punch list
   • List every item of incomplete work
   • Reference the contract for each item
   • Estimate cost to complete each item

Your defense: The lien amount should be reduced by your cost of completion/repair.

Substantial Performance Doctrine

California law says a contractor must "substantially perform" the contract to get paid.

If they abandoned the job or did such defective work that the project isn't substantially complete, they may not be entitled to payment at all.

Example:

• Contract for full home remodel: $463,600
• Contractor completed foundation, framing, roof: ~40% done
• Then left the job
• Result: No substantial performance = no payment

This is a fact-specific defense. Generally, 80-90% completion = substantial performance. Less than 50% = probably not.

Defense #5: The Preliminary Notice Wasn't Served (Subcontractors Only)

This applies if the lien is from a subcontractor or supplier (not the general contractor).

Subcontractors must serve a 20-day preliminary notice on:

• You (the owner)
• The general contractor
• Any construction lender

If they didn't, they lose lien rights for work done after Day 20.

How to Check

Ask the subcontractor:

• "When did you serve preliminary notice?"
• "Who did you serve it on?"
• "Do you have proof of service?"

Check your records:

• Did you receive a preliminary notice?
• When was it sent?
• How many days after they started work?

If no preliminary notice was served, the subcontractor's lien is invalid (or severely limited).

Your Action Plan When You Get a Lien

Immediate Actions (Within 7 Days)

1. Get copies of everything:

• The recorded mechanics lien
• The original contract
• All invoices from contractor
• All payments you made (checks, wire confirmations)
• Any change orders or emails about extras

2. Calculate the deadlines:

• When was work completed?
• When was lien recorded?
• When does contractor have to file lawsuit?

3. Review the contract:

• What does it say about payment schedule?
• What does it say about extras/change orders?
• Is everything in the lien actually in the contract?

4. Document the current state:

• Photograph the property
• List incomplete work
• Note any defects
• Get repair estimates if needed

Within 30 Days

1. Demand documentation:

Send written demand to contractor requesting:

• Complete breakdown of lien amount
• Copies of all invoices
• Proof of work performed
• Documentation of any extras
• Written change orders you allegedly signed

2. Consult an attorney:

If the lien is substantial, get legal advice on:

• Whether the deadlines were met
• Whether the amount is supportable
• Your defenses
• Whether to bond off the lien

3. Consider bonding off the lien:

You can remove the lien from your property by posting a bond for 150% of the lien amount. This:

• Clears your title
• Allows you to sell/refinance
• Shifts the lien to the bond
• Contractor must sue on the bond instead

Cost: Usually 1-3% of the bond amount annually

If Contractor Files Lawsuit

1. Respond within 30 days

You must file a response (answer or demurrer) within 30 days of being served.

Miss this deadline and you could lose by default.

2. Assert all defenses:

• Deadline violations
• Exaggerated amount
• Unauthorized extras
• Defective/incomplete work
• Payment schedule dispute

3. File counterclaims if appropriate:

• Breach of contract
• Cost to complete
• Cost to repair defects
• Damages

4. Demand strict proof:

Make the contractor prove:

• Every dollar claimed
• Every day worked
• Every material provided
• Authorization for extras

Force them to document everything.

What Happens If You Win

If you defeat the lien on a deadline violation:

• Lien is completely invalid
• Cannot be re-filed (deadline has passed)
• Title clears immediately

If you prove the amount is exaggerated:

• Entire lien may be invalidated (willful exaggeration)
• Or reduced to proper amount
• Contractor may owe you attorney fees

If you prove work was defective/incomplete:

• Lien amount reduced by your offset
• May result in contractor owing YOU money
• You recover cost of completion/repair

The Owner Who Waited Too Long

Here's what not to do:

Bad example:

• Contractor records lien on August 7
• Owner ignores it
• Owner tries to sell property in December
• Discovers lien, can't clear title
• Has to settle for inflated amount to close escrow
• Pays contractor $102,000 for disputed extras

If the owner had acted within 90 days:

• Forced contractor to file lawsuit (or lien expires)
• Challenged the amount
• Demanded documentation
• Potentially reduced or eliminated the lien

Timing matters for you too.

Key Takeaways

When you receive a mechanics lien:

• Act within 7 days to gather information
• Check the deadlines carefully (one day matters)
• Demand detailed breakdown of the amount
• Document the current condition of your property
• Consider bonding off the lien if you need clear title

Your strongest defenses:

• Contractor missed the 90-day deadlines (automatic win)
• Amount includes unauthorized extras (potential full invalidation)
• Work is incomplete or defective (offset/reduction)
• Payment schedule was never agreed to (amount not due)

Don't wait:

• Liens don't go away on their own
• Contractor has 90 days to file lawsuit
• After that, lien expires (if they don't file)
• But waiting could cost you opportunities (sales, refinancing)

Facing a mechanics lien on your property? The deadlines work both ways—the contractor has to act within 90 days, but you need to start gathering your defense immediately. Document everything and demand strict proof of every dollar claimed.

Michael Arikat is a real estate litigation attorney who spent 25+ years in the field as a contractor, developer, broker, and owner's representative. Now helping A/E/C professionals navigate the business and early career growth mistakes learned the hard way.

Questions about your situation? michael@ascentaec.com | AscentAEC.com