A homeowner contracts for $25,000 worth of work but only pays $18,000. The contractor files a lien. What is the maximum amount that can be claimed under Georgia lien law?
Correct Answer
D) $7,000 (unpaid balance)
Under Georgia lien law, a contractor can only claim a lien for the actual amount owed for work performed, which is $7,000 in this case.
Why This Is the Correct Answer
Under Georgia lien law, a mechanics lien can only be filed for the actual unpaid balance owed for work performed — not the full contract amount, not the amount already paid, and not inflated amounts including fees. $25,000 contract − $18,000 paid = $7,000 unpaid. The lien is limited to this $7,000.
Why the Other Options Are Wrong
Option A: $25,000 (contract amount)
The contractor cannot claim the full $25,000 contract amount because $18,000 has already been paid. Georgia law limits the lien to the actual amount owed (unpaid balance), not the gross contract value.
Option B: $30,000 (with interest and fees)
No provision in Georgia lien law allows claiming more than the actual amount owed. Adding interest and fees to exceed the contract amount is not permitted at the lien filing stage.
Option C: $18,000 (amount paid)
The $18,000 figure represents what was already paid, not what is owed. Claiming the paid amount would be seeking money that has already been received — this is incorrect and could expose the contractor to legal liability.
Memory Technique
Georgia lien = 'what you're owed, nothing more.' Contract price minus what you received equals your lien amount. $25,000 − $18,000 = $7,000. Simple subtraction.
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