Chapter 3 - Mechanics Lien Law

Question 1

A Mechanics Lien is limited to _________ works project

Answer 1

Private

Question 2

A ____________ bond is also known as a labor and materials bond.

Answer 2

Payment

Question 3

Saturdays, Sundays and any day when the county recorded office is closed are considered ____________

Answer 3

Holidays

Question 4

________________ must be in writing

Answer 4

Notices

Question 5

When mailing, You must have a receipt and tracking information as well as a ___________ ___ ___________ __________ to show proof that a notice was served

Answer 5

“ Proof of Notice Declaration”

Question 6

If a notice must be posted, it is considered ____________ when it is displayed

Answer 6

Served

Question 7

A ___________________ tells the recipient that you are improving the property

Answer 7

Preliminary Notice

Question 8

Direct contractors must send a preliminary notice to ________________ ____________

Answer 8

Construction Lenders

Question 9

Payment bonds are also referred to as ?

Answer 9

Labor and materials bonds

Question 10

All deadlines for Mechanics Lien Law are given in what kind of days ?

Answer 10

Calendar days

Question 11

What months of the year have 30 days ?

Answer 11

June, April, November, September

( JuANS)

Question 12

If you mail the notice, when is it considered to be “served” ?

Answer 12

When deposited in the mail

Question 13

For public works, serve the preliminary notice if you do not have contract with who ?

Answer 13

Direct Contractor

Question 14

A preliminary notice must be served within how many days of starting work ?

Answer 14

20 days

Question 15

Subcontractor are required by law to file a preliminary notice if their share of the contract is more than _____

Answer 15

$400

Question 16

A preliminary notice for public works contract must be sent to the ____________ AND the public agency

Answer 16

Direct Contractor

Question 17

To enforce a mechanics lien, a contractor who has still not been paid for labor and/or materials must file a __________________

Answer 17

Foreclosure Lawsuit

Question 18

Can material suppliers file a mechanics lien ?

Answer 18

Yes

Question 19

Can manufactures of materials file a mechanics lien ?

Answer 19

No

Question 20

When does the mechanics lien take effect ?

Answer 20

When filed with county recorder

Question 21

An owner may file a _______, to free the property from the lien

Answer 21

Bond

Question 22

The amount of the stop payment notice bond needs to be how much of the amount claimed in the stop notice payment ?

Answer 22

125% or 1-1/4 times

Question 23

What is the purpose of a stop payment notice ?

Answer 23

Require the recipient to set aside money

Question 24

A direct contractor may file a stop payment notice to who ?

Answer 24

The lender

Question 25

On a private works job, the owner must record a copy of the bond as well as what, before work begins ?

Answer 25

Original contract

Question 26

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?

Answer 26

15 days

Question 27

A notice of _______ is an official declaration that work has stopped

Answer 27

Cessation

Question 28

You would sign an ______ release when you have cash in hand

Answer 28

Unconditional

Question 29

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

Answer 29

Completion

Question 30

A mechanics lien will ________ unless a lawsuit to foreclose the lien is filed.

Answer 30

Expire

Question 31

You must also file a _________ ________ after filing a lien foreclosure lawsuit

Answer 31

Lis Pendes

Question 32

A payment-bond lawsuit is filed against the ______________

Answer 32

Bonding company

Question 33

A notice of cessation is only effective if labor has ceased for at least how many days prior to recording ?

Answer 33

30 days

Question 34

When a notice of completion has been filed, the original contractor has how many days to record a lien ?

Answer 34

60

Question 35

Generally, work is considered ceased if no work is performed for how many days?

Answer 35

60 days

Question 36

A notice of cessation may only be recorded after work has stopped for how many consecutive days ?

Answer 36

30 consecutive days