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Can we add interest to a lien?

CaliforniaMechanics Lien

We're a restoration company in CA. Our contracts include a 5% finance charge. Is it okay to include this 5% in the lien amount if the customer agreed to and signed off on it up-front?

3 replies

Jan 6, 2021

yes.

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Jan 7, 2021

Unfortunately not. The lien amounts under Cal. Civ. Code §8430 states that the amount claimed under a CA mechanics lien must be the lesser of either the reasonable value of the work provided, or the price agreed to under the contract. However, if the claim ultimately needs to be enforced, claims under the contract for the finance charges may be brought in the same actoin

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Jan 7, 2021
No, you can’t add any interest or late fees or penalties to the lien amount. You can recover these in any lawsuit if you win but you can’t put them in the lien. I’m happy to help if you have any more questions.

Cathleen M. Curl, Esq.
Law Office of Cathleen M. Curl
T 650-871-5955
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