A notice of completion is a written notice provided by a project owner that notifies all parties of the completion of work. It may be recorded on, or up to 15 days after the date of completion.
Both notices are utilized as a means of reducing the time that contractors or subcontractors may record a mechanics lien or serve a stop notice.
California Civil Code Section 3259.5 states that a project owner must provide a contractor with a notice of completion or a notice of cessation within 10 days of its recording. (Residential property owners do not need to serve such notices, however, if the property is only one to four units.) Notices should be served in person, or by registered/certified mail.
A contractor has 60 days to record a notice of completion. Subcontractors have up to 30 days to file. Failure to adhere to these proper deadlines may void the contractor’s right to a valid claim for a mechanic’s lien.
Failure by a project owner to provide a notice of cessation or a notice of completion within 10 days of recording, however, extends the period of time in which a contractor can file a mechanic’s lien from 60 days to 90 days.
