CSLB Insurance & Liens Practice Questions

1. A subcontractor begins work on a private project on March 1. To preserve lien rights, the preliminary notice must be served by:

On private works, preliminary notices must be served within 20 days of first furnishing labor, services, equipment, or materials. Serving late does not eliminate lien rights entirely but limits them to work performed within 20 days before service.

2. A preliminary notice on a private construction project must be served on:

Preliminary notices must be served on the owner, the prime contractor, and the construction lender (if any). Serving all three is necessary to fully protect lien and stop payment notice rights.

3. After completion of a private project, a claimant has how many days to record a mechanics' lien if no Notice of Completion is filed?

If no Notice of Completion or Cessation is recorded, a mechanics' lien must be recorded within 90 days of completion of the project. This is the maximum window for lien claimants.

4. If the owner records a Notice of Completion, subcontractors and suppliers must record their mechanics' lien within:

When an owner records a Notice of Completion, subcontractors and material suppliers (who are not the direct contractor) have only 30 days to record their mechanics' lien. The prime contractor has 60 days.

5. After recording a mechanics' lien, the claimant must file a lawsuit to enforce the lien within:

A recorded mechanics' lien expires unless the claimant files a lawsuit to enforce it within 90 days of recording. Failure to sue timely renders the lien void.

6. What is the purpose of a "stop payment notice" on a private construction project?

A stop payment notice (formerly "stop notice") requires the owner, lender, or public entity to withhold sufficient funds from the prime contractor to satisfy the claimant's unpaid claim.

7. An owner can release a recorded mechanics' lien by obtaining a lien release bond equal to:

To release a mechanics' lien from a property, the owner or contractor can record a lien release bond equal to 125% of the lien amount. This shifts the claimant's security from the property to the bond.

8. Which of the following is NOT required to be included in a mechanics' lien?

A valid mechanics' lien must include the claimant's name/address, employer/employee info, description of work/materials, amount of claim, description of the property, and owner's name. No SSN is required.