A subcontractor provided materials worth $18,000 to a residential project. The general contractor paid $12,000, leaving $6,000 unpaid. If the subcontractor files a lien and the property sells, what additional costs can they potentially recover under Arizona lien law?
Correct Answer
C) The $6,000 plus attorney fees, interest, and costs of suit
Arizona lien law allows recovery of the unpaid amount plus reasonable attorney fees, interest, and costs of suit when a lien is successfully foreclosed.
Why This Is the Correct Answer
Arizona lien law provides the broadest recovery to a successful lien claimant: the unpaid principal amount ($6,000) plus reasonable attorney fees, pre-judgment interest, and costs of suit (court filing fees, service costs, etc.). All three categories of additional costs are available when a lien is successfully foreclosed.
Why the Other Options Are Wrong
Option A: The $6,000 plus interest and costs of suit
Recovering the $6,000 plus interest and costs of suit omits attorney fees, which are expressly recoverable under Arizona's lien statutes. This option understates the full recovery available to a successful claimant.
Option B: The $6,000 plus reasonable attorney fees
Recovering the $6,000 plus reasonable attorney fees omits interest and costs of suit. While attorney fees are recoverable, the statute also permits recovery of interest on the unpaid amount and the costs of bringing the lien foreclosure action.
Option D: Only the $6,000 unpaid amount
Recovering only the $6,000 unpaid amount ignores the significant ancillary costs — attorney fees, interest, and court costs — that Arizona lien law explicitly allows. A claimant who wins a lien foreclosure action would be severely undercompensated if limited to the principal alone.
More Arizona Questions
What is the current minimum bond amount required for a residential contractor license in Arizona?
A contractor files a preliminary 20-day notice on January 15th for work that began on January 10th. The preliminary notice was delivered to the owner on January 18th. Under A.R.S. 33-981, is this notice valid for lien purposes?
Under Arizona law, which entity has the authority to investigate complaints against licensed contractors and impose disciplinary actions?
Under Arizona ROC regulations, what is the maximum amount a residential contractor can collect as a down payment before beginning work?
A contractor's license expires on June 30th. The contractor submits a renewal application on July 15th. Under Arizona ROC regulations, what penalty applies?
A contractor's workers compensation policy lapses for 15 days due to non-payment of premiums. Three employees are injured during this period, resulting in $85,000 in medical costs. Under Arizona law, what is the contractor's potential liability?
According to A.R.S. Title 32, which of the following can serve as a qualifying party for multiple contracting businesses?
A residential contractor enters into a contract for $15,000 to remodel a kitchen. Under Arizona law, what is the required down payment limitation?
A residential contractor completed $45,000 in work and materials. The homeowner paid $35,000 but disputes the remaining $10,000. How long does the contractor have to file a mechanics lien after recording the notice of completion?
A contractor has 8 employees working on various projects. The annual workers' compensation premium is $24,000. If the contractor fails to maintain coverage, what is the maximum daily penalty exposure?
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 Arizona lien law, which party has priority when multiple liens are filed against the same property?
Next Question
An Arizona residential contractor fails to obtain required permits for a $40,000 room addition. The ROC discovers this violation during an investigation. What is the most likely disciplinary action?