Insurance & LiensQuestion 79 of 690
An owner can release a recorded mechanics' lien by obtaining a lien release bond equal to:
a.100% of the lien amount
b.150% of the lien amount
c.The exact lien amount plus 10% interest
d.125% of the lien amount
Explanation
To release a mechanics' lien from a property, the owner or contractor can record a lien release bond equal to 125% of the lien amount. This shifts the claimant's security from the property to the bond.
Law Reference: Civil Code §8424Practice all 690 questions free — no signup required.
Related questions on this topic
- If the owner records a Notice of Completion, subcontractors and suppliers must record their mechanics' lien within:
- After recording a mechanics' lien, the claimant must file a lawsuit to enforce the lien within:
- What is the purpose of a "stop payment notice" on a private construction project?
- Which of the following is NOT required to be included in a mechanics' lien?
- On a public works project, a claimant who did not serve a preliminary notice can still file a:
- A general contractor typically has how many days after a Notice of Completion is recorded to file a mechanics' lien?
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