Ch3. Mechanics Lien Law

Question 1

A mechanics lien is limited to ________ works projects.

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 recorder’s office is closed are considered ____________.

Answer 3

Holidays

Question 4

_________ must be in writing.

Answer 4

Notices

Question 5

You must have a receipt and tracking information as well as a
_________ of ___________________to show proof

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

A preliminary notice must be served within __________ of starting work.

Answer 9

20 day

Question 10

Subcontractors are required by law to file a preliminary notice if their share of the contract is more than _______.

Answer 10

$400

Question 11

A preliminary notice for a public works contract must be sent to the ________________ and the public agency.

Answer 11

Direct Contractor

Question 12

Material suppliers ______ allowed to file a mechanics lien.

Answer 12

Are

Question 13

Manufacturers of materials _________ allowed to file a mechanics lien.

Answer 13

Are not

Question 14

A mechanics lien takes effect when it is _______.

Answer 14

Filed

Question 15

An owner may file a ________ to free the property from the lien.

Answer 15

Bond

Question 16

The purpose of a ______________________ is to require the recipient to set aside money.

Answer 16

Stop payment notice

Question 17

A direct contractor may file a stop payment notice if there is a _________________.

Answer 17

Construction lender

Question 18

If you work on a __________ works job, you may be allowed to file both a mechanics lien and stop payment notice.

Answer 18

Private

Question 19

If you perform work for __________________,
serve the stop payment notice on the director of the department that awarded the contract.

Answer 19

State of California

Question 20

A stop payment notice bond may be required by __________.

Answer 20

Lenders

Question 21

Subcontractors and suppliers benefit _______ from filing a claim against a payment bond.

Answer 21

Most

Question 22

On a private works job, the owner must record a copy of the bond and the _________________ before work begins.

Answer 22

Original contract

Question 23

A payment bond is ___________ on public works jobs.

Answer 23

Required

Question 24

If you do not send a preliminary notice, you may still file a claim against a payment bond within ____________ after a notice of completion is filed.

Answer 24

15 days

Question 25

A notice of nonresponsibility must be served by personal delivery, mailed, or express service carrier and must also be __________ and __________.

Answer 25

Posted and recorded

Question 26

After a job is 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 26

Completion

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

The owner will ask for a __________________ if you fail to foreclose the lien.

Answer 29

Release of the lien

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 pendens

Question 32

A payment-bond lawsuit is filed against the ____________________.

Answer 32

Bonding company