According to California Civil Code Section 3262, when estimating costs for a mechanics' lien claim, what is the maximum amount that can be claimed for work performed on a single-family residence?
Correct Answer
B) The amount of work actually performed minus payments received
California Civil Code Section 3262 allows mechanics' lien claims for the reasonable value of work actually performed, labor furnished, or materials delivered, minus any payments already received. The lien amount cannot exceed what is actually owed for completed work, protecting property owners from inflated claims.
Why This Is the Correct Answer
California Civil Code Section 3262 limits a mechanics' lien to the reasonable value of work actually performed, labor furnished, or materials delivered, minus any payments already received. The lien is tied to actual outstanding amounts owed, preventing contractors from inflating claims beyond what is genuinely unpaid.
Why the Other Options Are Wrong
Option A: The full contract amount plus change orders
Option A ('The full contract amount plus change orders') is incorrect because it ignores payments already made. A contractor who has been partially paid cannot lien for the full contract price—only for the unpaid balance of actual work done.
Option C: 75% of the original contract value
Option C ('75% of the original contract value') is a fabricated cap. California law contains no such percentage ceiling; the lien is based on actual work performed minus payments received, not a fixed percentage of the contract.
Option D: $150,000 regardless of contract value
Option D ('$150,000 regardless of contract value') is incorrect. California does not impose a flat dollar cap on residential mechanics' liens. The amount depends entirely on the outstanding balance for work actually performed.
Memory Technique
Think of the lien as your bank account balance: what you're owed equals what you earned minus what you already got paid. You can only deposit (lien) what is still outstanding.
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