A subcontractor records a $40,000 mechanics' lien on a home that the owner is trying to sell. To clear title so the sale can close, the owner records a lien release bond. The bond amount must be:
a.$40,000, equal to the lien
b.$20,000, half the lien
c.$50,000, which is 125% of the lien
d.$80,000, which is double the lien
Explanation
Under Civil Code §8424, a lien release bond must be 125% of the claimed lien amount. For a $40,000 lien, that is $50,000. The bond substitutes as security so the claimant's recovery shifts from the property to the bond.
Law Reference: Civil Code §8424This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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