A contractor files a mechanic's lien in Alabama for $45,000. What is the required bond amount to contest this lien?
Correct Answer
D) $67,500
Alabama requires a bond of 150% of the lien amount to contest. $45,000 × 1.5 = $67,500.
Why This Is the Correct Answer
Alabama law requires a bond equal to 150% of the lien amount to contest a mechanic's lien. $45,000 × 1.5 = $67,500, which is the correct bond amount.
Why the Other Options Are Wrong
Option A: $45,000
$45,000 represents 100% of the lien amount — the bond-to-lien ratio is incorrect. Alabama mandates 150%, not 100%, to ensure the claimant has adequate security while the lien is contested.
Option B: $90,000
$90,000 represents 200% of the lien amount, which overstates the required bond. The statutory requirement is 150%, not double the lien amount.
Option C: $56,250
$56,250 is 125% of the lien amount. While closer than other wrong answers, it falls short of Alabama's 150% statutory requirement.
Memory Technique
Think 'Alabama = A-and-a-Half': the bond is the lien amount plus HALF again. $45,000 + $22,500 (half of $45,000) = $67,500.
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A homeowner hires you for a $25,000 kitchen renovation but refuses to pay the final $5,000. You properly file a mechanics' lien. The homeowner wants to sell the house. What happens to your lien?
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