Which of the following is one way an owner can minimize lien risks by non-privity entities?

Having the contractor obtain a payment bond is an effective way for an owner to minimize lien risks arising from non-privity entities, such as subcontractors and suppliers who do not have a direct contractual relationship with the owner. A payment bond guarantees that funds will be available to pay all parties involved in the project. If a contractor fails to pay subcontractors or suppliers, the payment bond ensures that these parties can still receive payment, thereby reducing the likelihood of them filing a lien against the property.

This approach provides a level of financial security for the owner, as it helps prevent potential legal claims and asset encumbrances that could disrupt the ownership and usability of the property. It also incentivizes the contractor to fulfill their financial obligations under the contract, fostering a smoother project execution overall.