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A stop payment notice, also known as a stop notice, is given to notify the property owner, general contractor, and/or lender that the claimant has not been paid for their services, materials, or equipment in a construction project.
(Civil Code 3103). The Stop Notice may be served personally or by registered or certified mail.The Stop Notice procedures involve three basic steps: First: If you are not the general contractor, serving a preliminary 20-day notice; Second: Serving the Stop Notice; and. Third: Filing a lawsuit to enforce the Stop Notice.
A stop notice is a written demand to the construction lender or property owner to withhold a specified amount of project funds to cover the amount claimed is due in the stop notice.
A stop notice is a document given for the purpose of stopping, intercepting, or freezing funds that have not yet been paid on a construction project in an attempt to ensure payment.
Timeline to File a Stop Notice Within 30 days of recordation of notice of completion (all undisputed monies are released 35 days after the Countys recordation of the Notice of Completion), Within 90 days of the completion of the project if notice of completion is not recorded, but the project is accepted.
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The California Stop Notice Release Bond states that the Claimant in the matter should receive judgement in any action brought on said Claim. The bond holder should pay said judgement and costs to Claimant in an amount not exceeding the sum specified in this undertaking.
A bonded stop notice is defined as a stop notice given to a con- struction lender that is accompanied by a bond in a penal sum equal to 1.25 times the amount of the claim. 5 A construction lender is only obligated to withhold funds from an owner/borrower if properly served with a bonded stop notice.

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