Insurance & LiensQuestion 1495 of 1632

An owner or contractor who wants to remove a recorded mechanics lien from title while still disputing the claim may record a:

a.Lien release bond, generally in 125 percent of the lien amount
b.Stop payment notice, directing the lender to withhold that amount
c.Notice of completion, which cuts the claimant's deadline to 30 days
d.Notice of non-responsibility, disclaiming the owner's interest in the work

Explanation

Civil Code §8424 lets an owner, contractor, or anyone with an interest record a surety bond of 125 percent of the lien to free the title; the claimant's remedy then runs against the bond instead of the property. (b) points the wrong direction — a stop payment notice is a claimant's remedy that traps funds, not an owner's tool for clearing title. (c) is a real instrument with a real effect on deadlines under §8414, but it does nothing about a lien already recorded. (d) addresses work ordered by a tenant or other non-owner, and cannot remove a lien that has already attached.

Law Reference: Civil Code §8424

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