What is the penalty timeframe for a contractor who fails to release a lien after receiving payment?

When a contractor receives payment for work completed and fails to release a lien, Arizona law establishes a specific timeframe within which the contractor must take action to release that lien. The correct timeframe is 20 days. This provision is designed to protect property owners by ensuring that once payment has been made, they are not subjected to unnecessary encumbrances on their property.

If the contractor does not release the lien within this 20-day period, they may be subject to penalties which could include both civil and potential legal repercussions. This 20-day requirement reflects the legislative intent to prompt timely compliance from contractors and uphold fair business practices in the construction and contracting industry.

The other timeframes mentioned, such as 30, 60, and 90 days, do not align with the specific legal obligations outlined in Arizona's statutes regarding liens in the construction sector, thus making them incorrect choices in this context.