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Property Ownership Land Use ControlsEncumbrances_and_liensHARD

California's mechanics' lien law requires most claimants to serve a preliminary 20-day notice to preserve lien rights. Which party is statutorily exempt from this requirement?

Correct Answer

B) The prime contractor holding a direct contract with the property owner

Under California Civil Code §8200(e)(1), the prime (direct) contractor — the party in privity of contract with the property owner — is exempt from the preliminary 20-day notice requirement. Because the owner engaged the prime contractor directly, the owner already has constructive knowledge of that party's involvement and potential lien rights. The notice requirement exists to inform owners of claimants they may not know are on the project.

Answer Options
A
A subcontractor who performs framing work under a contract with the general contractor
B
The prime contractor holding a direct contract with the property owner
C
A lumber supplier that delivers materials to the job site
D
An equipment lessor that rents machinery used during construction

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Related Topics & Key Terms

Key Terms:

mechanics_lienpreliminary_noticedirect_contractor_exemptionNOTCivil_Code_8200
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