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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.

Answer Options
A
Keep a delivery ticket in the file and wait to address lien rights at final payment.
B
Ask the building inspector to notify the lender.
C
Send a product catalog instead of a preliminary notice, even though the lender notice requirement is a statutory notice issue.
D
The prime contractor may need to provide preliminary notice to the construction lender.

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.

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