A contractor completes work valued at $15,000 but the property owner refuses to pay the final $3,000. Under Tennessee lien law, what is the maximum amount the contractor can claim in a lien?
Correct Answer
B) $3,000
Under Tennessee lien law, contractors can only lien for the amount actually owed, which is $3,000 in this case.
Why This Is the Correct Answer
Under Tennessee's mechanic's lien statute (T.C.A. § 66-11-101 et seq.), a lien may only be filed for the amount that is actually owed and unpaid. The contractor is not owed $15,000 — the owner has already paid $12,000. Only the $3,000 balance remains due, so the lien is limited to $3,000. Liens are not a penalty mechanism; they secure only the actual debt.
Why the Other Options Are Wrong
Option A: $18,000
$18,000 has no basis in the fact pattern. There is no contract amount of $18,000, and a lien cannot exceed the value of the services actually rendered and unpaid. This is a distractor designed to catch those who add arbitrary amounts.
Option C: $12,000
$12,000 represents the amount already paid by the owner, not the amount owed. Filing a lien for the paid portion would be fraudulent and is not permitted under Tennessee lien law.
Option D: $15,000
$15,000 is the total contract value, but the lien cannot be for the full contract amount when a portion has already been paid. The lien is limited to the unpaid balance — $3,000 — not the gross contract value.
Memory Technique
A lien is like a receipt for money still owed — you can only receipt for what you haven't been paid yet. $15,000 earned – $12,000 received = $3,000 lien. Simple subtraction.
More Tennessee Questions
Calculate the Tennessee workers' compensation premium for a roofing contractor with a $180,000 annual payroll and a rate of $28.50 per $100 of payroll:
How many hours of continuing education are required for Tennessee contractor license renewal?
Calculate the workers' compensation experience modification factor for a contractor with $85,000 in expected losses and $68,000 in actual losses:
Under Tennessee lien law, what is the maximum time limit to enforce a mechanics lien after it has been filed?
Under Tennessee lien law, which party has priority when multiple liens are filed against the same property?
Under Tennessee building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
Under Tennessee building codes, what is the minimum ceiling height required for habitable rooms in residential construction?
A Tennessee contractor has 8 employees working on a residential project. The total weekly payroll is $6,400. If the workers' compensation rate for residential construction is $8.50 per $100 of payroll, what is the weekly workers' compensation premium?
A contractor is installing a septic system for a new home in rural Tennessee. The estimated cost is $8,500. According to TCA 62-6, what licensing requirement applies?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass