Under California Civil Code Section 8814, within how many days must a property owner pay undisputed amounts to a contractor after receiving an unconditional lien release?
Correct Answer
C) 7 days
Civil Code Section 8814 requires that undisputed progress payments be made within 7 days after receipt of an unconditional lien release. This prompt payment provision helps maintain cash flow in the construction industry and reduces payment disputes.
Why This Is the Correct Answer
Civil Code § 8814 mandates that owners pay undisputed progress payments within 7 days of receiving an unconditional lien release. This tight window maintains cash flow down the payment chain and is a hard statutory requirement.
Why the Other Options Are Wrong
Option A: 15 days
15 days exceeds the statutory requirement. While some prompt-payment windows in other contexts are 15 days, § 8814 specifically sets 7 days for this scenario.
Option B: 10 days
10 days is not the correct period under § 8814. It may be confused with other short-notice timeframes elsewhere in construction law.
Option D: 30 days
30 days is a common payment window in general contract law but does not apply here. The legislature chose a much shorter window to specifically protect contractor cash flow once an unconditional release has been surrendered.
Memory Technique
Associate '7 days' with 'one week.' Think: you gave up your lien rights — the owner owes you money within one week. The lien release is your receipt; payment follows within 7 days.
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