Insurance & LiensQuestion 1529 of 1605
A contractor who records a mechanics lien for an amount it knows is willfully overstated risks:
a.A larger recovery
b.Nothing, because liens are always valid as recorded
c.Losing the entire lien (the lien may be void) and possible liability for damages
d.An automatic 90-day extension
Explanation
Civil Code §8422 provides that a willfully overstated lien claim is void to the extent of the overstatement, and can result in the claimant losing lien rights and being liable for damages. Contractors should claim only amounts actually due.
Law Reference: Civ. Code §8422Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)