Yes it does sound scary, but it is the law in California. A subcontractor or materials supplier shall provide you with this notice to protect their rights to record a lien if needed to recover the costs of labor and or materials delivered to your home. This preliminary lien notice must be given to the homeowner before work begins or any product is delivered, and up to 20 days after. The law has been in effect since the 1850s, is known as a mechanics lien. It protects the workers to get paid for their services.
If you pay your contractor and he does not pay the supplier or sub-contractor, you may end up paying twice for those services and materials. Expect this preliminary lien notice by registered mail to be delivered to you. Don’t be shocked. When you get one of these it is not intended to reflect upon the financial condition of the contractor or the person employed by you on the construction project. It is the law in the state of California and possibly where you live, to inform you of these rights.
The job will run smoothly if this is all discussed and included in the contract prior to signing any agreement.
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