Insurance & LiensQuestion 79 of 163271% of test-takers answer this correctly

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 §8424

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