A subcontractor completes electrical work on a Tennessee project but is not paid by the general contractor. The project owner paid the general contractor in full. Can the subcontractor file a lien against the property?
Correct Answer
D) Yes - but limited to unpaid amount owed to general contractor
Under Tennessee lien law, subcontractors can file liens but recovery is limited to amounts still owed to the general contractor by the owner.
Why This Is the Correct Answer
Under Tennessee lien law, a subcontractor retains the right to file a mechanic's lien against the property even when the owner has paid the general contractor. However, the subcontractor's recovery is limited to the amount still owed by the owner to the general contractor at the time notice was given. Since the owner paid in full, recovery may be limited — but the lien right itself exists and is capped by that unpaid balance concept.
Why the Other Options Are Wrong
Option A: Yes - for full amount owed by general contractor
The subcontractor cannot lien for the full amount owed by the general contractor if the owner has already paid. The lien is limited to amounts that remain unpaid by the owner to the GC at the relevant time — not the entire GC-to-subcontractor debt.
Option B: Only if preliminary notice was filed
Tennessee does not require subcontractors to file a preliminary notice as a prerequisite to lien rights (unlike states such as California). The absence of a preliminary notice does not bar the lien in Tennessee.
Option C: No - owner has no liability
The owner is not entirely shielded from lien exposure simply because they paid the general contractor. Tennessee law protects subcontractors with lien rights — owners must be aware that paying the GC does not automatically extinguish subcontractor claims.
Memory Technique
Think of Tennessee lien law as a 'chain of money': the sub can reach up the chain to lien the property, but only grab what was left unpaid between owner and GC. Full payment by the owner limits (but does not eliminate) the sub's lien target.
More Tennessee Questions
Calculate the Tennessee workers' compensation premium for a roofing contractor with a $180,000 annual payroll and a rate of $28.50 per $100 of payroll:
How many hours of continuing education are required for Tennessee contractor license renewal?
Calculate the workers' compensation experience modification factor for a contractor with $85,000 in expected losses and $68,000 in actual losses:
Under Tennessee lien law, what is the maximum time limit to enforce a mechanics lien after it has been filed?
Under Tennessee lien law, which party has priority when multiple liens are filed against the same property?
Under Tennessee building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
Under Tennessee building codes, what is the minimum ceiling height required for habitable rooms in residential construction?
A Tennessee contractor has 8 employees working on a residential project. The total weekly payroll is $6,400. If the workers' compensation rate for residential construction is $8.50 per $100 of payroll, what is the weekly workers' compensation premium?
A contractor is installing a septic system for a new home in rural Tennessee. The estimated cost is $8,500. According to TCA 62-6, what licensing requirement applies?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
Under Tennessee lien law, what information must be included in a preliminary notice to preserve lien rights?
Next Question
A Tennessee contractor receives a complaint filed with the state licensing board alleging poor workmanship. The contractor fails to respond within the required timeframe. What is the potential consequence?