A subcontractor completes electrical work worth $12,000 on a Tennessee residential project. The general contractor fails to pay. What must the subcontractor do to preserve lien rights?
Correct Answer
A) Send a notice to the property owner within 90 days
Tennessee lien law requires subcontractors to send notice to property owners within 90 days of completion to preserve lien rights.
Why This Is the Correct Answer
Tennessee lien law (T.C.A. § 66-11-145) requires subcontractors who do not have a direct contract with the property owner to serve a Notice of Nonpayment on the property owner within 90 days of last furnishing labor or materials in order to preserve their lien rights. This notice protects the owner's ability to withhold payment from the GC and establishes the subcontractor's right to pursue a lien.
Why the Other Options Are Wrong
Option B: File a lien immediately upon completion
Filing a lien immediately upon completion without first providing the required notice is procedurally defective in Tennessee. The notice to the owner is a prerequisite step; skipping it and going directly to filing a lien will result in an invalid, unenforceable lien.
Option C: Send a notice to the property owner within 30 days
Sending notice within 30 days is incorrect for Tennessee subcontractors. The 30-day timeframe may apply in other states or to different notice types, but Tennessee law specifically requires 90 days for subcontractor notice to preserve lien rights.
Option D: No notice required for subcontractors
No notice required is incorrect. Tennessee does require notice from subcontractors who lack direct owner contracts. Believing no notice is required is the most dangerous mistake — it results in complete forfeiture of lien rights.
Memory Technique
Remember '90 days to notify in Tennessee' using the rhyme: 'In Tennessee, notify in ninety.' The notice goes to the property OWNER (not the GC who failed to pay), which is the legal hook — Tennessee law protects owners by requiring they be notified of payment disputes.
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
Calculate the total continuing education hours required for a Tennessee contractor to maintain licenses in three different classifications over a two-year period:
Next Question
Under the Tennessee Residential Building Code, what is the minimum ceiling height required for habitable rooms?