Legal Question in Construction Law in California
Mechanic's Lien interest rate
Homeowner is selling her home and wants to settle Mechanic's Lien, what is the legal amount of interest and/or penalties I can charge? Thank you.
Asked on 6/17/03, 9:41 pm
2 Answers from Attorneys
Gary Redenbacher
Redenbacher & Brown, LLP
Re: Mechanic's Lien interest rate
Legal interest is 10%.
Answered on 6/17/03, 10:05 pm
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
Re: Mechanic's Lien interest rate
In a private, out-of-court, settlement agreement, the terms of the settlement are up to the parties. Either party can compromise. However, using the legal (10%) rate avoids possible future controversy over whether a higher rate was usurious.
Answered on 6/18/03, 1:01 pm
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