Insurance & LiensQuestion 1474 of 1632

A payment dispute is resolved and the claimant has been paid. What does it record to clear the mechanics lien from the property?

a.A release of the mechanics lien
b.A notice of cessation of the labor
c.A posted notice of nonresponsibility
d.A preliminary notice to the owner

Explanation

Once paid, the claimant records a release of the mechanics lien, and that recorded release is what clears the lien from title. An owner who cannot obtain one has two statutory routes: record a lien release bond of 125 percent of the claim under §8424, which shifts the claimant's remedy from the land to the bond, or, once the claimant's 90 days under §8460 have run without an action, petition for a release order under §8480. (b) is a completion event under §8180(a)(4), which starts deadlines rather than ending a lien. (c) is the §8444 notice an owner who did not contract for the work posts and records within 10 days of learning of it. (d) is the §8200 notice served at the outset to preserve lien rights.

Law Reference: Civ. Code §8424 / §8480 / §8444

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