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Under Arizona law, a contractor completes a $35,000 home addition on March 15th. The final payment of $5,000 becomes due April 1st but remains unpaid. If the contractor files a lien on July 20th, what is the status of this lien?

Correct Answer

B) Invalid, filed more than 120 days after completion

The lien was filed 127 days after completion (March 15 to July 20), exceeding the 120-day requirement under A.R.S. 33-981, making it invalid.

Answer Options
A
Invalid, residential liens must be filed within 90 days
B
Invalid, filed more than 120 days after completion
C
Valid, but only if preliminary notice was properly served
D
Valid, filed within the 120-day requirement

Why This Is the Correct Answer

The lien was filed 127 days after completion (March 15 to July 20), exceeding the 120-day requirement under A.R.S. 33-981, making it invalid.

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