Insurance & LiensQuestion 1522 of 1605
The typical penal sum of a mechanics lien release bond required to clear a lien from title is:
a.100% of the lien amount
b.200% of the lien amount
c.125% (1.25 times) of the lien amount
d.50% of the lien amount
Explanation
Civil Code §8424 sets the lien release bond at 125% of the lien amount. Recording the bond shifts the claimant's remedy from the real property to the bond, allowing the owner to clear title while the dispute continues.
Law Reference: Civ. Code §8424Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)