Any lien or encumbrance claimant who records or files, or directs another to record or file, a lawsuit, lien, or other encumbrance in violation of Section 765.010 shall be liable to the person subject to the lawsuit or the owner of the property bound by the lien or other encumbrance for a civil penalty of up to five thousand dollars ($5,000).
§ 765.040.Liability of Claimant Filing Or Recording Lien In Violation of Section 6223
Title 10. Actions In Particular Cases · Chapter 4. Quiet Title · Article 6. Liens and Encumbrances · Last amended 2016 · Last verified July 28, 2026
In one sentenceSection 765.040 makes anyone who records or files, or directs another to record or file, a lawsuit, lien, or other encumbrance in violation of § 765.010 liable to the targeted person or property owner for a civil penalty of up to five thousand dollars.
Full Text of § 765.040
Plain-English Summary
Beyond striking the lien itself, this section attaches a monetary penalty to violating § 765.010. Anyone who records or files, or directs someone else to record or file, a lawsuit, lien, or other encumbrance that violates that section is liable to the person subject to the lawsuit, or the owner of the property bound by the lien or encumbrance.
The penalty runs up to five thousand dollars, giving the person who did the recording or directing a real financial reason to think twice, on top of the risk that the lien or lawsuit gets struck under § 765.030.
Frequently Asked Questions
What penalty applies to someone who files a harassing lien in violation of § 765.010?
A civil penalty of up to five thousand dollars, payable to the person subject to the lawsuit or the property owner bound by the lien.
Does the penalty apply to someone who directs another person to file the false lien?
Yes. Section 765.040 reaches anyone who records or files, or directs another to record or file, the violating lawsuit, lien, or encumbrance.
Amendment History
Amended by Stats 2015 ch 208 (AB 1267),s 4, eff. 1/1/2016.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: penalty for false lien californiacivil penalty fraudulent lien california