Chapter 3 - Mechanics Lien Law Flashcards
A Mechanics Lien is limited to _________ works project
Private
A ____________ bond is also known as a labor and materials bond.
Payment
Saturdays, Sundays and any day when the county recorded office is closed are considered ____________
Holidays
________________ must be in writing
Notices
When mailing, You must have a receipt and tracking information as well as a ___________ ___ ___________ __________ to show proof that a notice was served
“ Proof of Notice Declaration”
If a notice must be posted, it is considered ____________ when it is displayed
Served
A ___________________ tells the recipient that you are improving the property
Preliminary Notice
Direct contractors must send a preliminary notice to ________________ ____________
Construction Lenders
Payment bonds are also referred to as ?
Labor and materials bonds
All deadlines for Mechanics Lien Law are given in what kind of days ?
Calendar days
What months of the year have 30 days ?
June, April, November, September
( JuANS)
If you mail the notice, when is it considered to be “served” ?
When deposited in the mail
For public works, serve the preliminary notice if you do not have contract with who ?
Direct Contractor
A preliminary notice must be served within how many days of starting work ?
20 days
Subcontractor are required by law to file a preliminary notice if their share of the contract is more than _____
$400
A preliminary notice for public works contract must be sent to the ____________ AND the public agency
Direct Contractor
To enforce a mechanics lien, a contractor who has still not been paid for labor and/or materials must file a __________________
Foreclosure Lawsuit
Can material suppliers file a mechanics lien ?
Yes
Can manufactures of materials file a mechanics lien ?
No
When does the mechanics lien take effect ?
When filed with county recorder
An owner may file a _______, to free the property from the lien
Bond
The amount of the stop payment notice bond needs to be how much of the amount claimed in the stop notice payment ?
125% or 1-1/4 times
What is the purpose of a stop payment notice ?
Require the recipient to set aside money
A direct contractor may file a stop payment notice to who ?
The lender
On a private works job, the owner must record a copy of the bond as well as what, before work begins ?
Original contract
If you do not send a preliminary notice, you may still file a claim against a payment bond within how many days after a notice of completion is filed?
15 days
A notice of _______ is an official declaration that work has stopped
Cessation
You would sign an ______ release when you have cash in hand
Unconditional
After a job has finished, an owner can file a notice of _______ to shorten the time claimants have to file a mechanics lien or serve a stop payment notice
Completion
A mechanics lien will ________ unless a lawsuit to foreclose the lien is filed.
Expire
You must also file a _________ ________ after filing a lien foreclosure lawsuit
Lis Pendes
A payment-bond lawsuit is filed against the ______________
Bonding company
A notice of cessation is only effective if labor has ceased for at least how many days prior to recording ?
30 days
When a notice of completion has been filed, the original contractor has how many days to record a lien ?
60
Generally, work is considered ceased if no work is performed for how many days?
60 days
A notice of cessation may only be recorded after work has stopped for how many consecutive days ?
30 consecutive days
