A contractor receives a stop payment notice on a project where they are owed $25,000. Under Michigan lien law, what is the maximum amount the property owner can withhold?
Correct Answer
D) $25,000
Under Michigan Construction Lien Act 497, a property owner can withhold up to the amount claimed in the stop payment notice, which in this case is the full $25,000 owed.
Why This Is the Correct Answer
Under Michigan Construction Lien Act 497, a property owner can withhold up to the amount claimed in the stop payment notice, which in this case is the full $25,000 owed.
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Previous Question
A Michigan contractor completes $85,000 worth of work but has not been paid. Under the Construction Lien Act 497, what is the maximum lien amount that can be claimed?
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Under Michigan's Construction Lien Act 497, a subcontractor must serve a Notice of Furnishing within how many days of first furnishing labor or materials?