Insurance & LiensQuestion 1495 of 1605
An owner or contractor who wants to remove a recorded mechanics lien from title while still disputing the claim may record a:
a.Mechanics lien release bond (surety bond, generally 125% of the lien)
b.Preliminary notice
c.Stop payment notice
d.Notice of completion
Explanation
Civil Code §8424 allows a lien release bond, generally 125% of the lien amount, to be recorded to free the property title from the lien. The claimant's remedy then shifts to the bond rather than the real property.
Law Reference: Civ. Code §8424Practice all 1605 questions free — no signup required.
Related questions on this topic
- A 'notice of cessation' may be recorded by an owner when labor has ceased on the work of improvement for a continuous period of at least:
- The party who purchases a surety bond and whose performance is guaranteed is called the:
- On a bond, the party who is protected and can make a claim if the principal defaults is the:
- The 20-day period for serving a Preliminary Notice generally begins to run from the date the claimant:
- Which of the following is the BEST reason a general contractor requires subcontractors to name it as an additional insured and provide certificates of insurance?
- If a contractor illegally fails to carry required workers' compensation insurance and an employee is injured, the employee may:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)