EstatePass
Property Ownership Land Use ControlsEncumbrances_and_liensMEDIUM

A subcontractor in California provides plumbing materials for a residential construction project. The subcontractor did NOT serve a preliminary 20-day notice on the property owner. After the project is completed, the general contractor fails to pay the subcontractor. What is the consequence of failing to serve the preliminary notice?

Correct Answer

B) The subcontractor loses the right to claim a mechanics' lien on the property

Under California Civil Code §8200-8216, subcontractors and material suppliers (other than the direct contractor) must serve a preliminary 20-day notice on the property owner, the general contractor, and the construction lender to preserve their right to file a mechanics' lien. Failure to serve this notice means the subcontractor cannot claim a mechanics' lien for the work or materials provided.

Answer Options
A
The subcontractor can still file a mechanics' lien but it will have lower priority
B
The subcontractor loses the right to claim a mechanics' lien on the property
C
The subcontractor must wait an additional 90 days before filing a mechanics' lien
D
The subcontractor can file a mechanics' lien but must first obtain a court order

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Property Ownership Land Use Controls Question

Sign up free to unlock full analysis

Background Knowledge for Property Ownership Land Use Controls

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Property Ownership Land Use Controls

Sign up free to unlock full analysis

Common Mistakes to Avoid on Property Ownership Land Use Controls Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

mechanics_lienpreliminary_notice20_day_noticesubcontractorCivil_Code_8200
Was this explanation helpful?

More Property Ownership Land Use Controls Questions

People Also Study

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing