A Tennessee contractor files a mechanics lien for $45,000 on a residential property. What is the maximum lien amount allowed under Tennessee lien law for residential properties?
Correct Answer
D) $50,000
Tennessee lien law limits mechanics liens on residential properties to a maximum of $50,000.
Why This Is the Correct Answer
Tennessee lien law imposes a $50,000 maximum on mechanics liens filed against residential properties. The contractor's $45,000 lien is within this cap. Had the work value exceeded $50,000, only $50,000 could be secured through the residential lien.
Why the Other Options Are Wrong
Option A: $45,000
$45,000 is the amount the contractor filed, not the legal maximum. The question asks for the statutory cap, which is $50,000 — higher than what was filed in this scenario.
Option B: No maximum limit applies
Tennessee does impose a maximum for residential property liens. Stating 'no maximum limit applies' is incorrect — the $50,000 cap is a specific consumer protection provision of Tennessee lien law for residential properties.
Option C: $35,000
$35,000 is below the actual $50,000 statutory cap. This figure does not correspond to any Tennessee lien law threshold.
Memory Technique
Tennessee residential lien cap = $50,000. Think '50 for the home' — half of $100K is the ceiling Tennessee puts on homeowner lien exposure.
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Previous Question
Under Tennessee lien law, a subcontractor must provide notice to the property owner within how many days of first furnishing labor or materials?
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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: