Insurance & LiensQuestion 484 of 1632

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 every subcontractor's lien rights the moment it is recorded
b.Start the shortened deadlines for recording a claim of lien
c.Move the contractor's licence across to the owner of the site
d.Stretch the deadline for recording a lien to a full year

Explanation

§8188(a) lets the owner record a notice of cessation once labour on the work of improvement has stopped for a continuous period of at least 30 days that is still continuing on the day of recording, and §8188(c) requires the notice to state the date labour ceased and that the stoppage has continued. What it buys the owner is time: §8412 cuts the direct contractor's window to 60 days after the notice is recorded instead of 90 days after completion, and §8414 cuts every other claimant's window to 30 days. (d) inverts precisely that. (a) goes much too far — the notice starts a clock, it extinguishes nothing, and a claimant who records inside the shortened window has a perfectly good lien. (c) has nothing to do with the lien statutes and is impossible anyway, since B&P §7075.1(a) forbids transferring a licence. The notice matters most on exactly the facts given: on an abandoned job completion may never occur, so without it the 90-day clock never starts to run.

Law Reference: Civil Code §8188(a), (c); §8412; §8414

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