California Real Estate Practice Exam

Which of the following does NOT constitute completion for purposes of filing a mechanic's lien?

1. Acceptance and possession of structure by owner

2. Cessation of labor for 60 days

3. Cessation of labor for one month on any form of home improvement

4. Filing of notice by owner

The correct answer is: Acceptance and possession of structure by owner

The correct answer identifies a scenario that does not signify completion of work for the purposes of filing a mechanic's lien. Specifically, the acceptance and possession of a structure by the owner implies that the project has been completed to the satisfaction of the owner, thus enabling the possibility for a mechanic's lien to be filed. In contrast, the other options pertain to situations that can indeed signify the completion of a project: Cessation of labor for 60 days is a clear indication that work has not continued, which may lead to a completion status being recognized for the purpose of a mechanic's lien. Similarly, a cessation of labor for one month on any form of home improvement also serves as a trigger that may lead to the interpretation of completion. Lastly, the filing of notice by the owner can reflect a formal acknowledgment of the completion of work or a stoppage that meets the requirements for filing a lien. Thus, these actions clearly relate to the determination of whether work is deemed complete, while the owner's acceptance and possession do not contribute to establishing this completion in a legal sense.