When does a 3 day Right of Rescission apply to a Mechanic's Lien Contract?

Question

Is it only when someone is constructing a new home, or only if someone is constructing improvements on their property, or both?

Answer 1

There is no such thing as a "Mechanic's Lien Contract." If, as the previous answerer guessed, you are actually asking about a home improvement contract for work you will be having a contractor do on your residence, the recission rights and contract requirements will be governed by state law.

For example, under California law, any home improvement contract must include a 3-Day Right to Cancel Notice and 2 copies of a Notice of Cancellation; meaning, within 3 days of your signing the contract, you may cancel the contract by signing and sending back 1 of the 2 copies of the Notice of Cancellation. The only exception to this is in cases of natural disasters, where the cancellation period is 7 days instead of 3.

Under California law, a "home improvement contract" is a contract for work exceeding $750. There are different requirements for "service & repair contracts," which are used for projects up to $750.

A Mechanic's Lien is a lien a contractor or supplier can place on your property if he is not paid for work performed (whether he contracted directly with you, or if he is a subcontractor or supplier to a contractor you hired directly). Once the lien is recorded, the contractor must file a lawsuit in superior court to perfect his lien rights, and then may foreclose the property to satisfy the debt.

Answer 2

If you are asking if there is any sort of rescission time frame on a mechanic's lien, there is not. A mechanic's lien is filed when the 'mechanic' is not paid for the work done on a specific property. The lien is placed against the property title and may be used to effect payment, in a fashion similar to a mortgage lien.

Mechanic's liens can be put on any real estate, new or existing, if the mechanic involved is not paid for work and/or materials. The property owner can only remove the lien by satisfying the claim of the mechanic.

Answer 3

I'm guessing, perhaps incorrectly, that you are referring to signing a work contract with a contractor? As stated in the first answer, a mechanic's lien is placed when work is not paid for that has been completed.

You can probably cancel a work order without problem as long as work has not begun. The contractor may try to force you to go forward, but refuse access to your property and if necessary hire a lawyer to advise you of your rights / obligations. Even if they're attempting to force you to go forward you should be able to get out of any contract with minimal, if any losses. If you paid a substantial amount up front, it may be difficult to get that money back and it might be necessary to go to court over it.

1st call the contractor and attempt to cancel. If that doesn't work, call a lawyer and find out your rights, whatever you do, DO NOT let them do work.

Good Luck.

Answer 4

do you count weekend days as part of the 3 days?