Utah General Contractors - Business and Law Practice Exam

When contesting a lien, what must be filed with the county recorder?

1. A property deed

2. A bond with an approved surety or cash deposit

3. An application for review

4. A letter of intent

The correct answer is: A bond with an approved surety or cash deposit

When contesting a lien, filing a bond with an approved surety or a cash deposit with the county recorder serves a critical function in the legal process. This requirement acts as a security measure to ensure that the lien claimant is protected while the dispute is resolved. By posting a bond or cash deposit, the party contesting the lien essentially provides reassurance that they are financially capable of covering any damages that may arise from the lien claim if they lose the contest. This process allows for a more equitable resolution, as it mitigates the potential for unjust harm to the lien claimant, while also providing the contesting party a means to challenge the validity of the lien. The other options do not fulfill the legal requirements for contesting a lien. A property deed is related to ownership but does not pertain to contesting a lien directly. An application for review is not a standard requirement in this context, as the mechanism for contestation is more specific. Similarly, a letter of intent does not provide the necessary financial guarantee that is crucial to the process of contesting a lien effectively.