I was advised by levelset that when the GC bonds around the lien that extends the time to sue to six months. Pls confirm thanks,marshall
The relevant statute on the subject is Civil Code Section 8424(d), which states as follows:
“Civil Code 8424(d)): A person that obtains and records a lien release bond shall give notice to the claimant. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1 and shall include a copy of the bond. Failure to give the notice required by this section does not affect the validity of the bond, but the statute of limitations for an action on the bond is tolled until notice is given. The claimant shall commence an action on the bond within six months after notice is given.”