Contracts & ExecutionQuestion 534 of 690
Work on a private project ceases for 35 continuous days due to a financing dispute. The owner records a Notice of Cessation under Civil Code §8174. What is the effect on subcontractor lien deadlines?
a.Subcontractors must record liens within 30 days after the Notice of Cessation is recorded
b.Subcontractors must record liens within 90 days after the Notice of Cessation is recorded
c.The Notice of Cessation is invalid because work must cease for at least 60 days
d.The Notice of Cessation has no effect on subcontractor lien rights
Explanation
A Notice of Cessation under Civil Code §8174 can be recorded after work has ceased for at least 30 continuous days. When validly recorded, it shortens the subcontractor and supplier lien deadline to 30 days from recording, the same effect as a Notice of Completion.
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