Deck 14: Liens

Question 1

A lien guarantees a person will ultimately be paid for the work performed on a property

Answer 1

False

Question 2

If a stop notice is filed properly

A) the project has to shut down until a resolution is found
B) payments are withheld from the party identified as late in payments
C) the Owner has five days in which to rectify the situation
D) some but not all of the Contractors and Subcontractors on the site will be required to stop work until the critical issue is resolved

Answer 2

B

Question 3

On Federal work, a lien may not be permitted, so

A) the Constructor cannot do a thing to rectify our situation
B) the Constructor has 48 hours after payment was due to file a lien
C) the Constructor has 72 hours after payment was due to file a lien
D) the Constructor files a stop notice

Answer 3

D

Question 4

A joint check

A) is no longer legal
B) requires approval from the Owner
C) is one method of guaranteeing a debt to one party is paid
D) is always between the Owner and a Subcontractor

Question 5

An Owner

A) sometimes requires the Contractor to protect the Owner against all liens
B) will file a lien if a Subcontractor fails to perform
C) will file a lien if the Contractor fails to pay a Subcontractor
D) will expect a lien to be filed whenever a change in the schedule becomes necessary

Question 6

Lien laws

A) are set by the Federal Government
B) can be different from one state to another
C) were made universal under the LLC Act of 2004
D) were only modified under the LLC Act of 2004

Question 7

The Miller Act requires all Federal contracts over $50K to be covered with a payment bond

Question 8

Usually in the progress payment process a partial release of liens will be required to be submitted

Question 9

A stop notice is used on non-government projects to prevent payment being processed

Question 10

A lien could be paid from the proceeds of a Sheriff's sale

Question 11

Little Miller Acts are state acts similar to the Federal Miller Act

Question 12

A Sheriff sale

A) involves old furniture
B) will be one way a property with a lien might get sufficient funds to settle the lien
C) will satisfy the lien debts, and after that return the extra money to the Owner
D) wastes everyone's time and money