A contractor files a lien for $15,000 on a residential property. What is the maximum amount the contractor can recover in attorney fees if successful?
Correct Answer
C) $2,250
Georgia law allows recovery of attorney fees up to 15% of the lien amount. $15,000 × 15% = $2,250.
Why This Is the Correct Answer
Under Georgia law, when a contractor successfully enforces a lien, they may recover attorney fees up to 15% of the lien amount. For a $15,000 lien: $15,000 × 0.15 = $2,250. This statutory cap on attorney fee recovery is designed to make lien enforcement financially viable for contractors while limiting excessive litigation costs for property owners. This is a tested Georgia-specific provision that candidates must know precisely.
Why the Other Options Are Wrong
Option A: $3,000
A $3,000 recovery would represent 20% of the $15,000 lien — which exceeds the Georgia statutory cap of 15%. This amount is not supported by Georgia lien law for this lien value and would be an incorrect application of the fee recovery formula.
Option B: $5,000
A $5,000 recovery would represent 33.3% of the $15,000 lien, far exceeding the 15% cap under Georgia law. This figure has no basis in the statutory formula. It may seem reasonable as a legal fee but does not match the prescribed percentage.
Option D: $1,500
A $1,500 recovery would represent only 10% of the $15,000 lien. While 10% is a common percentage used in other legal contexts, Georgia lien law specifically allows up to 15% of the lien amount for attorney fees, making $2,250 the correct maximum.
Memory Technique
Georgia Lien Attorney Fees = 15%. $15,000 × 15% = $2,250. Think '15 for 15' — 15% on a $15,000 lien equals $2,250.
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