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What is the consequence of not filing a Notice of Completion in California?

  1. The lien period is reduced

  2. The contractor can file a lawsuit

  3. The lien period is extended

  4. The architect must file it instead

The correct answer is: The lien period is extended

In California, when a Notice of Completion is not filed, the legal consequence is that the lien period is extended. Normally, the filing of a Notice of Completion triggers a shorter time frame for subcontractors and suppliers to file mechanics’ liens on the property. If this notice is not submitted, the lien period remains at the longer duration, which can be up to 90 days after work is completed or the project is abandoned. This extension allows those who have provided labor or materials more time to protect their payment rights, as they can file liens against the property for a longer time if the Notice of Completion is absent. Therefore, the lack of filing effectively alters the timeline for resolving any financial disputes related to the project by maintaining a lengthier period during which claims can be made.