CSLB Contractor's Law & Business Practice Exam

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When a notice of completion has been filed, how many days does the original contractor have to record a lien?

  1. 30 days

  2. 45 days

  3. 60 days

  4. 90 days

The correct answer is: 60 days

When a notice of completion is filed, the original contractor has 60 days to record a mechanic's lien. This timeframe is significant because it establishes a deadline for contractors to secure their right to payment after the completion of a project. The 60-day period begins from the date the notice of completion is recorded, allowing contractors to assert their claim against the property for unpaid work. This legal mechanism is crucial, as it provides some certainty and a method for contractors to protect their financial interests in a potentially precarious situation where payments might be delayed or denied. Understanding this timeline is essential for contractors to manage their cash flow and ensure they have a means of recourse if disputes arise regarding payment. Recording a lien after this period would jeopardize the contractor's ability to enforce payment through a lien, making it vital for them to act within the designated time frame.