A construction lender finances the owner's project. What preliminary-notice point should the prime contractor remember?
Correct Answer
D) The prime contractor may need to provide preliminary notice to the construction lender.
CSLB homeowner lien guidance notes a prime contractor's preliminary-notice requirement to the construction lender on loan-funded projects.
Why This Is the Correct Answer
CSLB homeowner lien guidance notes a prime contractor's preliminary-notice requirement to the construction lender on loan-funded projects.
Why the Other Options Are Wrong
Option A: Keep a delivery ticket in the file and wait to address lien rights at final payment.
Keep a delivery ticket in the file and wait to address lien rights at final payment. puts the item in the wrong financial bucket, timing, base, or comparison for preliminary notice.
Option B: Ask the building inspector to notify the lender.
Ask the building inspector to notify the lender. puts the item in the wrong financial bucket, timing, base, or comparison for preliminary notice.
Option C: Send a product catalog instead of a preliminary notice, even though the lender notice requirement is a statutory notice issue.
Send a product catalog instead of a preliminary notice, even though the lender notice requirement is a statutory notice issue. puts the item in the wrong financial bucket, timing, base, or comparison for preliminary notice.
Memory Technique
An unlabeled Organizing Paperwork dollar tells the wrong story.
Reference Hint
Study anchor (closed-book): memorize Preliminary notice from CSLB Mechanics Lien guidance; California Civil Code / California Civil Code preliminary notice to construction lender; mechanics lien; know the rule or calculation trigger without relying on exam-room lookup.
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