Insurance & LiensQuestion 475 of 1605
Which of the following parties is generally NOT entitled to record a mechanics' lien on a private construction project?
a.A bank that loaned the owner money but furnished no labor or materials
b.A subcontractor who furnished labor
c.A material supplier who delivered lumber to the site
d.An equipment lessor who rented equipment used on the project
Explanation
Mechanics' lien rights belong to those who furnish labor, services, equipment, or materials that improve the property, such as contractors, subcontractors, laborers, suppliers, and equipment lessors. A lender that merely provided financing has no mechanics' lien right.
Law Reference: Civil Code §8400Practice all 1605 questions free — no signup required.
Related questions on this topic
- A project owner asks to be named an "additional insured" on the general contractor's liability policy. What does this accomplish for the owner?
- A contractor's employee causes an accident while driving a company truck to a job site. Which policy is primarily intended to respond to the resulting third-party vehicle and injury claims?
- A design-build contractor makes a professional design error that causes a client financial loss but no bodily injury or property damage. Which coverage is specifically intended for this kind of claim?
- On a private project where NO Notice of Completion or Cessation is recorded, what deadline applies to ALL claimants for recording a mechanics' lien?
- A subcontractor served a proper preliminary notice but the owner never paid. Before recording a mechanics' lien, the subcontractor should make sure the lien claim states an amount that is:
- On a private project, an owner who wants to shorten the time claimants have to record liens should:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)