1 exam prep business procedures florida lien law practice test · 1 exam prep – business...

1 Exam Prep – Business Procedures (Florida Lien Law) 1

1 Exam Prep

Business Procedures

Florida Lien Law Practice Test

Part 1

1. Furnished material as covered by the Construction Lien Law includes .

A. Supplied materials included in the improvement, excluding normal waste.

B. Rented tools excluding hand tools.

C. Rented tools including hand tools.

D. Fabricated materials in the raw state when still in the manufacturing process.

2. Persons in privity with the owner may not claim a lien for which of the following?

A. Labor furnished by him.

B. Services furnished by him.

C. Materials furnished but Claim of Lien not recorded.

D. Materials furnished to the job by him.

3. If action is not begun to enforce a lien in court, a recorded lien is good for .

A. 45 days

B. 60 days

C. 90 days

D. 1 year

4. The recording of a Notice of Commencement constitutes a on the property.

A. Lien

B. Cloud

C. Encumbrance

D. None of the above

5. Under the definition of labor in the Construction Lien Law, who of the following is qualified as a laborer?

A. A person performing labor and supplying some of the materials.

B. A person supplying material and labor of others.

C. A person doing land surveying and site improvement.

D. A superintendent furnishing services only.

6. Under the Construction Lien Law, a Claim of Lien means:

A. The lienor has made his claim verbally.

B. The lienor has notified the contractor in writing

C. The lienor has recorded his claim as provided by law



7. A lien against the property may be transferred to other security by .

A. Depositing a sum of money at the county clerk's office.

B. By filing with the county clerk's office a bond executed as surety by a surety insurer licensed in the

state equal to an amount of $2,500.

C. Through action of the lienor.

D. None of the above.

8. You have filed and recorded a lien. The owner recorded a Notice of Contest of Lien. You now have _to

institute suit to enforce the lien?

A. 360 days

B. 90 days

C. 60 days

D. 30 days

9. A Claim of Lien will become void if you fail to serve the claim within how many days/hours after recording?

A. 72 hours

B. 7 days

C. 10 days

D. 15 days

10. In accordance with the Construction Lien Law, the last liens to be allowed or paid by the owner or the court

would be?

A. Liens of the contractor

B. Liens of the laborers

C. Liens of the material men

D. Liens of the architects and engineers

11. It is the responsibility of the _ under the Florida Construction Lien Law to record and post a

Notice of Commencement.

A. Architect

B. Contractor

C. Land surveyor

D. Owner

12. Prejudgment interest on a subcontractor's construction lien who is not in privity with the owner is due from

the date of the .

A. Notice to Owner

B. Contest of Lien

C. the debt was due

D. Claim of Lien


13. Service of a Claim of Lien upon the owner can be made by .

A. Registered mail

B. Certified mail with return receipt

C. Posting on the premises

D. Any of the above

14. A lienor shall be required to record Claim(s) of Lien against real property when the amount

demanded is for services or materials furnished at more than one physical location but bound under the same

direct contract.

A. One

B. Two

C. Zero


15. If for any reason the completion of an improvement is abandoned and materials delivered are not used, the

person who has delivered those materials may ______.

A. Use force and disassemble any materials on the job site.

B. Peaceably repossess materials incorporated into the job.

C. Peaceably repossess materials not incorporated into the job.

D. Litigate to win repossession of any materials leftover.


Part 2

1. Before improving any real property, the owner should file a with the county clerk's office.

A. Notice of commencement.

B. Waiver of lien.

C. Payment bond.

D. Copy of the contract.

2. A Release of Lien is a document .

A. Releasing the contractor from further responsibility.

B. Releasing the owner from any responsibility.

C. Releasing the architect and engineer from responsibility.

D. Certifying to the owner that the contractor has paid all labors and materials.

3. A contractor or potential lienor who has a direct contract, written or verbal, with the owner is considered:

A. Not in privity

B. An exempt lienor

C. In privity

D. A Direct contract

4. When filing a claim of lien, the lienor is not required to furnish .

A. The name of the lienor's attorney.

B. The name of the owner.

C. A description of the real property sufficient for identification.

D. The amount of the lienor.

5. According to the Florida Construction Lien Law, when the final payment under a direct contract becomes

due, the contractor shall execute an affidavit and deliver it to the owner at least before instituting

an action to enforce his lien.

A. 5 days

B. 7 days

C. 10 days

D. 14 days

6. Once you have properly filed a notice, which of the following becomes a true statement?

A. The owner may pay you directly.

B. The general contractor may fire you.

C. You give up your payment position.

D. You must sign off as "paid."


7. According to the Construction Lien Law 713, Claims of liens under a direct contract should be paid to which

of the following first?

A. Lien of contractor

B. Lien of all persons other than the contractor

C. Lien of lender

D. Lien of Laborers

8. A subcontractor who does not have a contract with the owner but intends to file a lien on the owner's property

shall be required to serve a notice on the owner not later than .

A. 30 days after the work is completed

B. 45 days after the work has began

C. 15 days after the date of substantial completion

D. The last day the subcontractor performs work for the owner

9. Under the Lien Law, "improve" does not mean .

A. Build

B. Repair

C. Demolish

D. Confiscate

10. Any improvement for which the contract price is _ _ or less shall be exempt from all provision of

this law except liens in privity.

A. $500

B. $1,000

C. $2,000

D. $2,500

11. Liens between lienor claiming under a direct contract shall be paid or allowed in which of the following

orders?

A. Labor, others, contractor

B. Contractor, suppliers, labor

C. Suppliers, contractors, others

D. Contractor, suppliers and labor, sub-contractors

12. A single claim of lien is sufficient for improvements under the same direct contract even though the

improvements are located on separate lots if the .

A. Lots are in the same county.

B. Owner is the same for all lots.

C. Lots are located in different counties.

D. Owners are several people.


13. If property is located in two or more counties, a claim often shall be recorded in the clerk's office

in .

A. The county where the majority of the property is located.

B. Both counties.

C. Either county.

D. Neither county.

14. If a contractor gives an affidavit as to the lienors who have not been paid in full, the owner may, after giving

the contractor at least written notice, pay such bills in full, directly to the person or firm to which

they are due.

A. 10 days

B. 15 days

C. 20 days

D. 30 days

15. According to the law manual only, when a contract for the improvement of real property is made by a

husband or wife, the other shall within days after learning of such a contract, give the contractor

and record in the clerk's office, notice of his or her objection thereto.

A. 10 days

B. 15 days

C. 20 days

D. 30 days

16. When a surety bond has been posted, no action shall be instituted or prosecuted against the surety on the

bond after from the performance of the labor or completion of the materials and supplies.

A. 30 days

B. 60 days

C. 90 days

D. 1 year

17. Privity, a term used in the construction lien statutes, would best be defined by which of the following

relationships?

A. A good working relationship with other contractors.

B. A direct contractual relationship with the owner.

C. A written contract for the work with a fixed price.

D. A relationship offering a privilege with a supplier:

18. The Notice to Owner must be served by a material supplier before commencing, or not later

than days from commencing to furnish materials to the real property.

A. 30

B. 45

C. 60

D. 90

1 Exam Prep – Florida Lien Law (County) 7

Part 3

1. In accordance with the Construction Lien Law, the last liens to be allowed or paid by the owner or the court

would be ______________.

A. liens of the contractor

B. liens of the laborers

C. liens of the material men

D. liens of architects and engineers

2. A Notice To Owner must be served _________________.

A. before commencing

B. not later than 45 days from commencing

C. not later than 90 days from completion

D. A or B

3. Improve, in the Construction Lien Law includes _________________.

A. alter

B. demolish

C. place

D. all of the above

4. A Release Of Lien is a document ___________________.

A. releasing the contractor from further responsibility

B. releasing the contractor from any responsibility

C. releasing the architect and engineer from responsibility

D. certifying to the owner that the contractor has paid all labor and materials

5. Posting, according to the Construction lien Law, does not mean placing the document referred

to ___________________.

A. on the site

B. in a conspicuous place

C. on the front of the site

D. 3 to 4 feet above the ground

6. The Construction Lien Law states that a contract means an agreement for improving real

property_________________.

A. in writing

B. written or unwritten, expressed or implied

C. not including extras or change orders to the contract

D. excluding work done beneath the surface of any land


7. Persons in privity with the owner may not claim a lien for which of the following?

A. labor furnished by him

B. services furnished by him

C. materials furnished by claim of lien not recorded

D. materials furnished to the job by him

8. When filing a Claim of Lien, the lienor is not required to furnish which of the following?

A. the name of the lienor

B. the name of the lienor's attorney

C. the name of the owner

D. a description of the real property sufficient for identification

9. Under the Construction Lien Law, a claim of lien means ________________.

A. the lienor has made his claim verbally

B. the lienor has notified the contractor in writing

C. the lienor has recorded his claim as provided by law

D. none of the above

10. According to the Construction Lien Law, who is the first lienor to be paid in cases involving more than one

lienor?

A. laborers

B. all persons other than the contractor

C. the contractor

D. the architect

11. Under the Florida Construction Lien Law, how many days does the contractor have to record a claim of lien,

from the last day of furnishing labor, services or material?

A. 30 days

B. 45 days

C. 60 days

D. 90 days

12. According to the Florida Construction Lien Law, a claim of lien becomes legally filed when the contractor

sends claim of lien to the owner by certified mail.

A. True

B. False


13. If you are filing a claim of lien on real property and it is located in three counties, then the claim of lien shall

be recorded in the Clerks’ office ________________.

A. in the county where the largest portion of land is located

B. in any of the counties, it makes no difference

C. in the county where the claimant has his principal office or business

D. in each of the counties

14. According to the Construction Lien Law, when the final payment under a direct contract becomes due to the

contractor, the contractor shall give to the owner an affidavit stating, if that be the fact, that all lienors have been

paid in full or, if the fact be otherwise, showing the name of each lienor who has not been paid in full and the

amount due. If the contractor fails to provide the above affidavit, the owner shall retain _____________ of the

last payment due under contract until all expenses are paid.

A. 5%

B. 10%

C. 12%

D. all

15. Failure to serve a claim of lien within ___________days after recording shall render the claim voidable.

A. 7

B. 10

C. 15

D. 20

16. A lien of any lienor upon whom a Notice Of Contest of lien is served and who fails to institute suit to

enforce his lien within _____________ days of such notice shall be extinguished automatically.

A. 30

B. 45

C. 60

D. 90

17. Unless action to enforce a lien is commenced in court, a lien will continue for a maximum of

_________________ after it is recorded.

A. 1 year

B. 3 years

C. 5 years

D. 7 years


18. H & B Builders, Inc. sends a "Notice To Owner" form to Mr. And Ms. Smith for whom they are

constructing a custom residence. The purpose of the "Notice To Owner" is ______________ . Select the

most correct response.

A. Record a claim of lien against the owner

B. Establish a doctrine of relation back

C. Comply with the notice of commencement requirement

D. Inform the owner of a potential lienor

19. H & B Builders, Inc. applies for a building permit for a new contract. According to the Construction Lien

Law, the owner of the project, (the person whose property is subject to attachment), ___________ that “failure

to comply with the Construction Lien Law can result in the property owner paying twice for the building

improvements”. Select the most correct response.

A. must be notified by the permit issuing authority, by a copy of the building permit

B. Must sign an affidavit, before a permit can be issued, staling that it is understood.

C. Should be notified by the contractor, as promised as a condition of issuance of the permit.

D. Cannot claim ignorance of the law as an excuse for non-compliance.

20. On March 3, H & B Builders, Inc. submitted the Application and Certificate for Payment #2 for the Smith

residence in the amount of $24,300.00. The architect certified payment on March 9. On March 30, H & B

Builders, Inc. still had not received payment for this pay period.

H & B then gives written notice to the owner and the architect of the project that H & B Builders, Inc., is going

to stop work and file a claim of lien against the project in the amount of $24,300.00.

According to the Florida Construction Lien Law, H & B Builders, Inc. has _______________ days from the

time the last work was done on the project to file a claim of lien and days from the recording of Notice of

Contest of Lien for action to enforce the lien.

A. 90 and 60

B. 45 and 60

C. 60 and 60

D. 90 and 90


21. Hartford Development Company approaches Able of Estell Construction Company concerning a

development in a nearby area. Hartford will buy the land, develop the property and arrange for the financing.

Estell Construction Company is expected to act as the prime contractor in the construction of the buildings.

Since Able is a general contractor, he will pull all permits and serve as project manager. Tom Smith, one of the

owners of Hartford Development Company, is a registered engineer in Ohio, and can act as the prime contractor

there. Hartford Development Company and Estell Construction Company agree to split the profits of the

operation on a 55%/45% basis. Under Florida law, which statement best applies?

A. Hartford Development Company and Estell Construction Company have formed a legal joint venture

in Florida.

B. For Estell Construction Company to enter into such an agreement, a Florida corporation must be

formed.

C. An "5" corporation with less than 35 stockholders should be formed with Estell Construction

Company acting as the registered agent for the new firm. Either Able or Tom Smith can act for the

business in all areas of construction.

D. This is not a legal Florida relationship due to the out-of-state corporation's association with a legal

Florida business concern.

22. On March 3, Estell Construction Company submitted an Application and Certification For Payment Number

Three (3) for the newspaper office building in the amount of $86,279.00. The architect certified the payment on

March 9; on March 30, Estell Construction Company still had not received the payment for this pay period.

Able then gives written notice to the owner and to the architect of the project that Estell Construction Company

is going to stop work and file a claim of lien against the project for $86,279.00, Estell Construction Company

then has ___________days from the time the last work was done on the

project to file a claim of lien and __________ days from the recording of the Notice of Contest Of Lien for

action to enforce the lien.

A. 90 and 60 days

B. 45 and 60 days

C. 60 and 60 days

D. 90 and 90 days

23.The concrete subcontractor started work on a construction project 17 days after the date the contract was

signed, (July 11). Final payment to the contractor was paid in reliance on the final contractor's affidavit made on

October 20. The construction Lien Laws require that the concrete subcontractor's Notice To Owner must be

served to the owner no later than _______________. (Refer to calendar below).

Note: If the final day falls on Sunday, the notice may served the next day.

A. anytime prior to filing claim of lien

B. September 11

C. September 12

D. October 20

JULY AUGUST SEPTEMBER OCTOBER .

S M T W T F S S M T W T F S S M T W T F S S M T W T F S

1 2 1 2 3 4 5 6 1 2 3 1

3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8

10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15

17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22

24 25 26 27 28 29 30 27 28 29 30 25 26 27 28 29 30 31 23 24 25 26 27 28 29

31 30 31


24. The only method of extending a lien beyond the one year deadline is if ___________________.

A. an action is filed in court to enforce the lien

B. an extension of lien is requested

C. the lien is re-recorded

D. a notice of lien has been sent to the owner

25. A contractor does not receive a payment on schedule and gives written notice to the owner and the architect

that he is going to stop work on the project and file a claim of Lien against the project.

The contractor has ___________ days from the time the last work was done on the project to file a lien and

________________ days from the recording of a Notice of Contest of Lien for action to enforce the lien.

A. 90 and 60

B. 45 and 60

C. 60 and 60

D. 90 and 90

26. The contractor sends a "Notice to Owner" form to the owner of a custom residence he is constructing. The

purpose of a "Notice to Owner" is to ______________.

A. record a claim of lien against the owner

B. establish a "doctrine of relation back"

C. comply with the notice of commencement requirement

D. inform the owner of potential lienors

27. A _______________ can be used to shorten the duration of a claim of lien.

A. a notice of contest of lien

B. a notice of priority of lien

C. a notice of extent of lien

D. a form for owner


1 Exam Prep

Business Procedures

Florida Lien Law Practice Test

Part 1

1. A 4. D 7. A 10. A 13. D

2. C 5. D 8. C 11. D 14. A

3. D 6. C 9. D 12. D 15. C

Part 2

1. A 4. A 7. D 10. D 13. B 16. D

2. D 5. A 8. B 11. A 14. A 17. B

3. C 6. A 9. D 12. B 15. A 18. B

Part 3

1. A

2. D

3. D

4. B

5. D

6. B

7. C

8. B

9. C

10. A

11. D

12. B

13. D

14. D

15. C

16. C

17. A

18. D

19. C

20. A

21. A

22. A

23. C

24. A

25. A

26. D

27. A

*See below for page numbers and explanation of answers


EXPLANATIONS OF ANSWERS

Part 1

1.Ans A. Sec 713.01, Definitions, (12), Pg 109.

2.Ans C. Sec 713.05, Liens of persons in privity, Pg113. "No lien...until a claim of lien is recorded."

3.Ans D. Sec 713.22, Duration of Lien (1), Pg 139.

4.Ans D. Sec 713.13, Notice of Commencement, Pg 124. See (3), Pg 127.

5.Ans D. Sec 713.01, Definitions, (15), Pg 109.

6.Ans C. Sec 713.01 (3). Definitions, Pg 108.

7. Ans A. Sec 713.24, Transfer of liens, Pg 145. See (1) (a).

8. Ans C. Sec 713.22, Duration of Lien, Pg 139. See (2), Pg 140.

9. Ans D. Sec 713.08, Claim of lien, Pg 120. See (4)(c), Pg 122.

10. Ans A. Sec 713.06, Liens of Persons not in privity, Pg 114. See (4)(a), Pg 119, Item 3.

11. Ans D. Sec 713.13, Notice of Commencement, (1)(a), Pg 124. "Owner or owners agent".

12. Ans D. Sec 713.08, Claim of Lien, Pg 120.

13. Ans D. Sec 713.18, Manner of serving notices, Pg136. See (1) (a), (b) & (c).

14. Ans A. Sec 713.09, Single claim of lien, Pg 123.

15. Ans C. Sec 713.15, Repossession of materials, Pg 133.

Part 2

1.Ans A. Sec 713.13, Notice of Commencement, Pg 124. See (1)(a).

2. Ans D. Sec 713.20, Waiver or release, Pg 137. See (3). Not clearly spelled out, but other answers are

obviously wrong.

3. Ans C. Sec 713.05, Liens of persons in privity, Pg 113.

4. Ans A. Sec 713.08, Claim of lien, Pg 120. See (1)(d), (e) & (g).

5. Ans A. Sec 713.06, Liens of persons not in privity, Pg 114. See (3) (d) 1., Pg 118

6. Ans A. Sec 713.06, Liens of persons not in privity, Pg 114. See (3) , Pg 116

7. Ans D. Sec 713.06, Pg 113. See (4) (a), Pg 119.

8. Ans B. Sec 713.23, Payment bond, Pg 140. See (1)(c).

9. Ans D. Sec 713.01, Definitions, Pg 108. See (13).

10. Ans D. Sec 713.02, Types of lienors, Pg 111. See (5).

11. Ans A. Sec 713.06, Liens of persons not in privity, Pg 114. See (4)(a)1.2.3, Pg 119.

12. Ans B. Sec 713.09 Single claim of lien, Pg 123.

13. Ans B. Sec 713.08, Claim of lien, Pg 120. See (5), Pg 122.

14. Ans A. Sec 713.06, Liens of persons not in privity, Pg 114. See (3)(d) 2., Pg 118.

15. Ans A. Sec 713.12, Liens for improving...husband or wife, Pg 124.

16. Ans D. 713.245 (2)

17. Ans B. State and County 713.05

18. Ans B. 713.06 (2)(a)

Part 3

No explanation

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