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A subcontractor files a mechanics lien for $25,000 on a residential property. Under HRS 507, what is the maximum amount the homeowner's property can be liened for if the total contract value was $80,000?

Correct Answer

D) $80,000

Under HRS 507, the total amount of all mechanics liens cannot exceed the original contract price. In this case, the maximum lien amount would be $80,000, the total contract value.

Answer Options
A
$25,000
B
$40,000
C
No maximum limit
D
$80,000

Why This Is the Correct Answer

Under HRS 507, the total amount of all mechanics liens cannot exceed the original contract price. In this case, the maximum lien amount would be $80,000, the total contract value.

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