Insurance & LiensQuestion 1566 of 1605
A stop payment notice, unlike a mechanics lien, does NOT need to be:
a.Supported by a valid claim
b.Given by someone who furnished work
c.Served on the correct party
d.Recorded with the county recorder
Explanation
A stop payment notice is served, not recorded; it directs the owner or lender to withhold funds. A mechanics lien, by contrast, is recorded against the property. Both require a valid underlying claim by someone who furnished work and proper service.
Law Reference: Civ. Code §8500Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)