A homeowner hires a contractor for $8,500 worth of work. The contractor completes the job but the homeowner refuses to pay, claiming defective work. Under Virginia mechanics lien law, what is the contractor's maximum lien amount if the work was actually worth $7,200?
Correct Answer
A) $7,200
Virginia mechanics lien law limits the lien amount to the actual value of work performed. The contractor can only lien for $7,200, the actual value of the work.
Why This Is the Correct Answer
Virginia mechanics lien law (Title 43 of the Virginia Code) limits a contractor's lien to the actual value of the labor and materials provided, not the contract price. Because the work was determined to be worth $7,200 — not the contracted $8,500 — the maximum enforceable lien is capped at $7,200, the actual value received by the property owner.
Why the Other Options Are Wrong
Option B: $15,700
Adding the contract price and the actual value ($8,500 + $7,200 = $15,700) has no legal basis. Liens may never exceed the lesser of the contract amount or actual value; combining them is a fabricated figure.
Option C: $0 - no lien rights for defective work
Virginia law does not strip lien rights simply because work is alleged to be defective. The homeowner's claim of defects is a defense to payment, but it does not eliminate the contractor's lien rights; the lien amount is reduced to actual value, not zeroed out.
Option D: $8,500
The original contract price of $8,500 would be the lien ceiling only if the work was worth at least that much. Since a dispute exists and the actual value is established at $7,200, the lien cannot exceed that actual value.
Memory Technique
Think of the lien as a 'receipt for value delivered.' You can only claim what you actually gave, not what you promised to give. If the homeowner got $7,200 of value, that is the receipt amount — period.
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