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On a California homeowner’s private improvement project, unconditional claimant releases for the previous progress payment are missing. What payment-control step does CSLB’s mechanics-lien guidance describe?

Correct Answer

D) Withhold the next payment until the unconditional releases are received.

CSLB’s homeowner guidance allows withholding the next payment until unconditional releases for the previous payment arrive. It does not describe CSLB escrow or automatic cancellation. Source: https://web.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/How_To_Prevent_A_Mechanics_Lien.aspx

Answer Options
A
Rely only on the contractor’s assurance that everyone was paid.
B
Cancel the contract immediately without documenting the missing releases.
C
Send the next payment directly to CSLB for escrow.
D
Withhold the next payment until the unconditional releases are received.

Why This Is the Correct Answer

CSLB’s homeowner guidance allows withholding the next payment until unconditional releases for the previous payment arrive. It does not describe CSLB escrow or automatic cancellation. Source: https://web.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/How_To_Prevent_A_Mechanics_Lien.aspx

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