California Real Estate Practice Exam

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When a mechanic's lien has been filed and then terminated, what should be filed to ensure no cloud appears on the title?

Affidavit of lien
Notice of cessation
Lien release
Warranty deed

The correct answer is: Lien release

When a mechanic's lien has been filed and subsequently terminated, a lien release should be filed to clear any cloud on the title. A lien release serves as formal documentation that signifies the removal of the mechanic's lien, thus assuring all parties that the lien no longer holds any weight or claim against the property. This is crucial in real estate transactions as it reinstates the title's clear status, allowing for free and marketable ownership. The other options, while related to property and liens, do not serve the purpose of explicitly releasing a lien. An affidavit of lien typically documents the existence of a lien but does not cancel it. A notice of cessation can signify that work has stopped on a project but does not directly resolve the lien. Similarly, a warranty deed is a legal document for the transfer of property ownership and does not address the lien's termination. Thus, filing a lien release is the appropriate action to ensure the title is unclouded following the termination of a mechanic's lien.