Mechanics Lien Law Flashcards

1
Q

Months with 30 days

A

September, April, June, and November

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2
Q

What’s another way to remember which days have 31?

A

Counting on your knuckles

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3
Q

A mechanics lean may only be used for ________ works projects

A

Private

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4
Q

Also known as a labor and materials bond

A

Payment bond

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5
Q

Definition of holidays for mechanics lien?

A

Saturdays, Sundays, and any day when the county recorders office is closed

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6
Q

Notices must be served in

A

Writing. Registered, certified, express mail, delivered, or posted. Delivered notices must also be mailed

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7
Q

Delivery must be verified by submitting a

A

Proof of notice declaration

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8
Q

A posted noticed is considered served when it is

A

Displayed

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9
Q

First step to claim a mechanics lien, stop payment notice, or payment bond

A

Preliminary notice. Must be served within 20 days of first providing service or materials.

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10
Q

Preliminary notices must be filed by any sub providing more than

A

$400 of subcontract value.

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11
Q

The purpose of a preliminary notice is to

A

Make the owner aware of their liabilities in the event that a subcontractor is not paid for materials or service.

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12
Q

Who does not need to send a preliminary notice

A

Wage earners and union trust funds

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13
Q

Who must be given a preliminary notice

A

Property owner
Direct contractor and the lender

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14
Q

Private works preliminary notices should include

A

General description of the work provided. An estimate of the total price of the work provided and to be provided.

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15
Q

Preliminary notice for a Publix work contract must be sent to the

A

Direct contractor and public agency

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16
Q

A preliminary notice must be served within

A

20 days of starting work

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17
Q

Who is entitled to to file a mechanics lien

A

Licensed, direct, prime contractors, licensed subcontractors, material suppliers, leasers of equipment, labor, and design professionals.

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18
Q

A notice of mechanics lien must include

A

The amount of money owed, name of the property, owner, description of the labor, services and materials, the name of the person who employed the claimants. A description of the property being liened, the claimants address. a proof of service affidavit and a formal notice of mechanics lien

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19
Q

A lien release bond may be used to release a property from a lien if it is equal to

A

125% of lien value

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20
Q

A stop work order may be used if

A

An owner fails to make a progress payment within 35 days of the due date specified in the contract

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21
Q

A stop payment noticed is used

A

By subcontractors to require the owner to set aside, funds to pay the subcontractor

22
Q

A stop payment notice is delivered

A

Whoever controls the flow of money

23
Q

Stop notice bonds are used to

A

Protect the owner lender, or direct contractor for any costs or losses that might be sustained as a result from any stop payment notice for sub that later, proves to be invalid in court

24
Q

Stop payment notice bonds must equal

A

125% of the stop payment notice

25
The purpose of a stop payment notice is
To require the recipient to set aside money
26
A direct contractor may file a stop payment notice if there is a
Construction lender
27
You may be allowed to file both the mechanics and a stop payment notice if
It is a private project
28
Stop payment notices for public agencies must be delivered to the
Director of the department that awarded the contract
29
Stop payment notice bond may be required by
Lenders
30
Owners and lenders may lawfully Ignore a stop payment notice if.
The original contract and 50% payment bond have been recorded Before work begins.
31
Payment bonds are required for public works projects of more
Then $25,000
32
Payment bonds for a public works project must be for at least
100% of the contract price
33
Who benefits most from filing a claim against a payment bond
Subcontractors and suppliers
34
On private jobs, the owner must record a copy of the bond and the original contract before 
Work begins
35
If you do not send a preliminary notice, you may still file a claim against a payment bond within
15 days after notice of completion or 75 days after work is completed if no notice of completion is filed
36
Purpose of stop payments notice bonds
One, it protects the owner lender and direct contractor in case the stop payment proves to be invalid. Two, it forces lenders to obey the stop payment notice
37
Purpose of Release bond
Posted by a direct contractor or owner who disputes a stop payment notice or bonded stop payment notice. It releases the funds frozen by a stop payment notice.
38
Payment bond
This bond is posted by the direct contractor. It provides security for subs suppliers in case the direct contractor does not pay them.
39
A notice of non-responsibility
Protects an owner from being responsible for unauthorized work
40
A notice of completion or notice of cessation
Is an official declaration that work on a project is finished
41
Once a notice of cessation or notice of completion is filed contractors must file any liens within
60 days
42
Once a notice of cessation or notice of completion is filed subcontractors must file any liens within
30 days
43
What determines completion, if no notices recorded
Work has stopped, and the owner or agent moves into the property or starts using it. The owner accepts the work orally in writing or by providing final payment Work stops for at least 60 straight days
44
The owner of a private work must notify all the people who had sent preliminary notices when a notice of completion or cessation is recorded within
10 days
45
The purpose of a waiver and release is
To require a sub or supplier to sign a waiver and release of rights to a lien stop payment notice or payment bond
46
Unconditional waivers should only be used when
Cash is in hands
47
Unless a lawsuit is filed, a mechanic lien will expire after
90 days
48
A payment bond lawsuit is filed against the
Bonding company
49
After filing a lien foreclosure lawsuit, you must also file a
Lis pendes
50
Unless a lawsuit to foreclose the lien is filed, a mechanics lien will
Expire after 90 days