CSLB Contract and Lien Laws

Question 1

Under California's Mechanics' Lien Law, what is the deadline for a direct contractor to record a mechanics' lien after a Notice of Completion is filed?

Accepted Answer

60 days

Answer

A direct (prime) contractor must record a mechanics' lien within 60 days after a Notice of Completion is recorded by the owner.

Question 2

What is the purpose of a 'Preliminary Notice' (20-day preliminary notice) in California construction?

Accepted Answer

To preserve a subcontractor's or material supplier's right to later file a mechanics' lien

Answer

Serving a Preliminary Notice within 20 days of first providing work or materials is required for subcontractors and suppliers to preserve their mechanics' lien rights.

Question 3

In California, which party is responsible for recording a Notice of Completion after a construction project is finished?

Accepted Answer

The property owner

Answer

The property owner records the Notice of Completion with the county recorder, which starts the shortened lien deadline period for contractors and suppliers.

Question 4

What is the maximum retention percentage that an owner may withhold from a contractor on a private California construction project?

Accepted Answer

10%

Answer

California Civil Code limits retention on private construction contracts to no more than 10% of each progress payment.

Question 5

Under California law, a mechanics' lien must be enforced by filing a lawsuit within how many days of recording the lien?

Accepted Answer

90 days

Answer

A mechanics' lien becomes unenforceable unless a lawsuit to foreclose the lien is filed in court within 90 days of recording.

CSLB - Contractors State License Board Practice Test

CSLB - Contractors State License Board Practice Test

CSLB Contract and Lien Laws