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A subcontractor files a lien for $18,000 on a project. The general contractor disputes $6,000 of the claim. What amount should be held in escrow pending resolution?

Correct Answer

C) $18,000

Under Michigan lien law, the full lien amount ($18,000) should be held in escrow until the dispute is resolved, regardless of the disputed portion.

Answer Options
A
$6,000
B
$24,000
C
$18,000
D
$12,000

Why This Is the Correct Answer

Under Michigan lien law, the full lien amount ($18,000) should be held in escrow until the dispute is resolved, regardless of the disputed portion.

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