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CALIFORNIA STATE CONTRACTORS
LICENSE LAW AND BUSINESS TEST
STUDY GUIDE BRAND NEW ACTUAL EXAM
WITH ANSWERS.
1. What is the Notice to the Owner about? - correct answer -It is a
form that informs the owner of the Contractor's right to a
Mechanics Lien.
2. Am I required to put my contractor license # on all contracts? -
correct answer -Yes. Your license number must go on all
contracts that you enter with anyone. It must go on everything.
3. What is a Mechanics Lien? - correct answer -It is a Lien (hold)
placed upon the property that received construction. This lien is
filed when you (the contractor) do not receive payment for your
work. It is an action to foreclose the property that you worked
on, in order to get the payment for your services.
4. What is a Stop Payment Notice? - correct answer -A lien on
construction funds. Similar to a mechanics lien except with this
notice the lien is placed upon the funds and not the property.
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5. Can you record both a Mechanics Lien and a Stop Payment
Notice on private work? - correct answer -Yes.
6. Can you record a Mechanics Lien and a Stop Payment Notice
on public work? - correct answer -No. To get payment for
unpaid work and unpaid supplies in public works, you must file
a Stop Payment Notice. Mechanics Lien is limited to Private
Works.
7. What must you file to keep the right to Mechanics Lien? -
correct answer -A Preliminary Notice Form within 20 days of
signing the contract. Subcontractors, suppliers and anyone
who is going to participate in the job in question must also file a
Preliminary Notice if they want to keep their right.
8. Who must file the "Notice of Completion"? - correct answer -
The owner must file this notice when the work on his/her
property is completed.
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9. How many days does the owner have to file a "Notice of
Completion"? - correct answer -Must be filed withing 15 days of
when the work is completed.
10. How many days does the contractor have to file a Mechanics
Lien? - correct answer -If the owner does not file the Notice of
Completion within 15 days the contractor has 90 days to file a
Mechanics Lien. If the owner does file the Notice of Completion
within 15 days the contractor only has 60 days to file a
Mechanics Lien.
11. How many days does the subcontractor have to file a
Mechanics Lien? - correct answer -If the owner does not file a
Notice of Completion within 15 days, the sub has 60 days. If
the owner does file the Notice of Completion withing 15 days,
the sub only has 30 days to file a Mechanics Lien.
12. Can you file a Mechanics Lien if you don't file a Preliminary
Notice? - correct answer -No. If you fail to file a Preliminary
Notice you forfeit your right to file a Mechanics Lien and Stop
Payment Notice.
CALIFORNIA STATE CONTRACTORS
LICENSE LAW AND BUSINESS TEST
STUDY GUIDE BRAND NEW ACTUAL EXAM
WITH ANSWERS.
1. What is the Notice to the Owner about? - correct answer -It is a
form that informs the owner of the Contractor's right to a
Mechanics Lien.
2. Am I required to put my contractor license # on all contracts? -
correct answer -Yes. Your license number must go on all
contracts that you enter with anyone. It must go on everything.
3. What is a Mechanics Lien? - correct answer -It is a Lien (hold)
placed upon the property that received construction. This lien is
filed when you (the contractor) do not receive payment for your
work. It is an action to foreclose the property that you worked
on, in order to get the payment for your services.
4. What is a Stop Payment Notice? - correct answer -A lien on
construction funds. Similar to a mechanics lien except with this
notice the lien is placed upon the funds and not the property.
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5. Can you record both a Mechanics Lien and a Stop Payment
Notice on private work? - correct answer -Yes.
6. Can you record a Mechanics Lien and a Stop Payment Notice
on public work? - correct answer -No. To get payment for
unpaid work and unpaid supplies in public works, you must file
a Stop Payment Notice. Mechanics Lien is limited to Private
Works.
7. What must you file to keep the right to Mechanics Lien? -
correct answer -A Preliminary Notice Form within 20 days of
signing the contract. Subcontractors, suppliers and anyone
who is going to participate in the job in question must also file a
Preliminary Notice if they want to keep their right.
8. Who must file the "Notice of Completion"? - correct answer -
The owner must file this notice when the work on his/her
property is completed.
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9. How many days does the owner have to file a "Notice of
Completion"? - correct answer -Must be filed withing 15 days of
when the work is completed.
10. How many days does the contractor have to file a Mechanics
Lien? - correct answer -If the owner does not file the Notice of
Completion within 15 days the contractor has 90 days to file a
Mechanics Lien. If the owner does file the Notice of Completion
within 15 days the contractor only has 60 days to file a
Mechanics Lien.
11. How many days does the subcontractor have to file a
Mechanics Lien? - correct answer -If the owner does not file a
Notice of Completion within 15 days, the sub has 60 days. If
the owner does file the Notice of Completion withing 15 days,
the sub only has 30 days to file a Mechanics Lien.
12. Can you file a Mechanics Lien if you don't file a Preliminary
Notice? - correct answer -No. If you fail to file a Preliminary
Notice you forfeit your right to file a Mechanics Lien and Stop
Payment Notice.
