A subcontractor provided $8,500 in materials and labor. The general contractor paid $6,000, leaving a balance of $2,500. If the subcontractor files a mechanics lien, what is the maximum lien amount that can be claimed?
Correct Answer
B) $2,500
Under Arizona lien law, the lien amount cannot exceed the amount actually owed for labor and materials furnished, which is $2,500.
Why This Is the Correct Answer
Option B is correct. Under Arizona lien law, a mechanics lien can only be filed for the amount actually owed and unpaid. Since the general contractor paid $6,000 of the $8,500 owed, the remaining unpaid balance is $2,500. The lien cannot exceed the actual debt.
Why the Other Options Are Wrong
Option A: $8,500
$8,500 is the total contract value, not the amount owed. Filing a lien for the full contract amount when a partial payment has been received would be an overstatement of the debt and is not permitted under Arizona lien law.
Option C: $6,000
$6,000 is the amount already paid, not the amount owed. Confusing the paid amount with the lien amount is a common error. The lien protects the unpaid balance, not what has already been satisfied.
Option D: The amount depends on the contract terms
The lien amount is not discretionary based on contract terms — it is determined by statute as the actual unpaid amount for labor and materials furnished. Contract language cannot expand lien rights beyond what is legally owed.
Memory Technique
Lien = What You're Still Owed. The math: $8,500 billed − $6,000 paid = $2,500 lien. Think of the lien as a 'balance due' sticker placed on the property — it shows only the outstanding balance, not the original price tag.
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