Insurance & LiensQuestion 1549 of 1605
An equipment rental company rents a crane to a subcontractor on a private project. To preserve a mechanics lien for unpaid rental charges, the rental company should:
a.Do nothing, since equipment lessors have automatic liens
b.Serve notice only on the subcontractor
c.Serve a preliminary notice on the owner, direct contractor, and construction lender within 20 days of first furnishing
d.Record a lien before delivering the crane
Explanation
Equipment lessors that provide equipment for a work of improvement have lien rights but, lacking a direct owner contract, must serve a preliminary notice on the owner, direct contractor, and lender within 20 days of first furnishing under Civil Code §8200 to preserve those rights.
Law Reference: Civ. Code §8200Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)