Insurance & LiensQuestion 484 of 1605
A contractor abandons a private project before it is finished and the owner records a Notice of Cessation after work stops for a continuous period. The Notice of Cessation primarily serves to:
a.Cancel all lien rights of every subcontractor immediately
b.Start the shortened lien-recording periods even though the project was never completed
c.Transfer the contractor's license to the owner
d.Extend the lien-recording period to one full year
Explanation
When a project stalls, a recorded Notice of Cessation (after work has ceased for a continuous statutory period) triggers the same shortened lien-recording deadlines as a Notice of Completion, giving the owner certainty even though the work was never finished.
Law Reference: Civil Code §8174Practice all 1605 questions free — no signup required.
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