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CSLB - LAW AND BUSINESS EXAM 2025|
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK|
ACE YOUR GRADES.
Preliminary 20-day Notice must contain: - correct answer - -
Name and address of person furnishing labor, materials,
equipment, or service.
- General description and price estimate.
- Name of person who contracted for purchase of labor, materials,
equipment or service.
- Description of jobsite sufficient for ID
- Statement that claimant has right to file mechanic's lien.
- If lender involved, total price of claimant's contract must be
included.
Notice of Nonresponsibility - correct answer - - A contractor must
send a preliminary 20-day notice to owner if contractor contracts
with tenant or an agent.
- Owner may choose to not be held responsible by filing this
notice with county recorder within 10 days of prelim notice.
- Renders contractor unable to file mechanic's lien.
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- Must be posted at job site in conspicuous place.
Release of Mechanic's Lien - correct answer - - Once contractor
or suppliers have been paid in full, owner may ask contractor or
supplier to sign this to prove the contractor/supplier is paid in full
and thus can't file mechanic's lien.
Construction Loan - correct answer - - Money not dispersed at
once, rather over life of project.
- Balance of loan does not exceed value of property at particular
point in time.
- Lender can place lien on property until amount owed is paid in
full.
Stop Notice - correct answer - - Similar to mechanic's lien in that it
ensures contractor can collect funds due.
- Different in that it's placed on funds as opposed to on property.
- Given to lender or awarding authority in case of public works
obligating them to withhold money on the loan to pay notice
amount.
- Doesn't have to be filed, just delivered to lender or awarding
authority.
- Hand delivered w/receipt or registered mail
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- Deadline to file same a mechanic's lien - 90 days from
termination of contract unless notice of cessation or notice of
completion is filed.
Stop Notice Must Contain Following: - correct answer - - Name,
address, signature of filing contractor.
- Name of individual for whom the labor/services were provided.
- Description of work to be done or supplies to be furnished.
- Value (close as possible) of work that has been done or
materials provided along with total amount of contract.
What must be done to "perfect" a stop notice and when can it be
done? - correct answer - File a lawsuit between 10-90 days
following stop notice.
In order to have a valid stop notice, what must be present? -
correct answer - Bond of 1.25 times the amount of the stop claim
notice.
An inactive license must be renewed every __ years? - correct
answer - 4
CSLB - LAW AND BUSINESS EXAM 2025|
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK|
ACE YOUR GRADES.
Preliminary 20-day Notice must contain: - correct answer - -
Name and address of person furnishing labor, materials,
equipment, or service.
- General description and price estimate.
- Name of person who contracted for purchase of labor, materials,
equipment or service.
- Description of jobsite sufficient for ID
- Statement that claimant has right to file mechanic's lien.
- If lender involved, total price of claimant's contract must be
included.
Notice of Nonresponsibility - correct answer - - A contractor must
send a preliminary 20-day notice to owner if contractor contracts
with tenant or an agent.
- Owner may choose to not be held responsible by filing this
notice with county recorder within 10 days of prelim notice.
- Renders contractor unable to file mechanic's lien.
, Page | 2
- Must be posted at job site in conspicuous place.
Release of Mechanic's Lien - correct answer - - Once contractor
or suppliers have been paid in full, owner may ask contractor or
supplier to sign this to prove the contractor/supplier is paid in full
and thus can't file mechanic's lien.
Construction Loan - correct answer - - Money not dispersed at
once, rather over life of project.
- Balance of loan does not exceed value of property at particular
point in time.
- Lender can place lien on property until amount owed is paid in
full.
Stop Notice - correct answer - - Similar to mechanic's lien in that it
ensures contractor can collect funds due.
- Different in that it's placed on funds as opposed to on property.
- Given to lender or awarding authority in case of public works
obligating them to withhold money on the loan to pay notice
amount.
- Doesn't have to be filed, just delivered to lender or awarding
authority.
- Hand delivered w/receipt or registered mail
, Page | 3
- Deadline to file same a mechanic's lien - 90 days from
termination of contract unless notice of cessation or notice of
completion is filed.
Stop Notice Must Contain Following: - correct answer - - Name,
address, signature of filing contractor.
- Name of individual for whom the labor/services were provided.
- Description of work to be done or supplies to be furnished.
- Value (close as possible) of work that has been done or
materials provided along with total amount of contract.
What must be done to "perfect" a stop notice and when can it be
done? - correct answer - File a lawsuit between 10-90 days
following stop notice.
In order to have a valid stop notice, what must be present? -
correct answer - Bond of 1.25 times the amount of the stop claim
notice.
An inactive license must be renewed every __ years? - correct
answer - 4
