A contractor files a lien for $25,000 on a Georgia property. The property owner disputes the amount and wants to post a bond to release the lien. What is the required bond amount?
Correct Answer
C) $37,500
Georgia law requires a bond equal to 150% of the lien amount to discharge a construction lien, so $25,000 × 1.5 = $37,500.
Why This Is the Correct Answer
Option C is correct. Georgia lien law requires a property owner who wants to discharge (release) a recorded construction lien to post a bond equal to 150% of the lien amount. Calculation: $25,000 × 1.50 = $37,500.
Why the Other Options Are Wrong
Option A: $75,000
Option A ($75,000) is incorrect. This would represent 300% of the lien amount, which is three times the statutory multiplier — far above what Georgia law requires.
Option B: $25,000
Option B ($25,000) is incorrect. Posting a bond equal to the face value of the lien (100%) is insufficient under Georgia law. The 150% requirement ensures the claimant is adequately protected if the bond is called.
Option D: $50,000
Option D ($50,000) is incorrect. This represents 200% of the lien amount. While greater than the lien face value, it exceeds the statutory 150% requirement.
Memory Technique
To release a Georgia lien, pay 1.5× — 'one-and-a-half times to set it free.' $25,000 lien × 1.5 = $37,500. Visualize a padlock: it takes 150 keys (150%) to unlock the lien on the property.
More Georgia Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
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