Under Georgia's Right to Lien Act, when must a contractor provide a lien waiver upon payment?
Correct Answer
D) Within 10 days of payment
Georgia law requires contractors to provide lien waivers within 10 days of receiving payment for work performed.
Why This Is the Correct Answer
Georgia's Right to Lien Act requires contractors to furnish a lien waiver within 10 days of receiving payment. This tight window protects property owners by ensuring prompt written confirmation that the paid amount is released from lien claims.
Why the Other Options Are Wrong
Option A: Only upon project completion
Option A ('Only upon project completion') is incorrect because lien waivers are required each time payment is received, not just at the end of the project. Waiting until completion would leave interim payments unprotected.
Option B: Within 15 days of payment
Option B ('Within 15 days of payment') states a plausible-sounding deadline but is not what Georgia law specifies. The correct statutory window is 10 days, not 15.
Option C: Within 30 days of payment
Option C ('Within 30 days of payment') is far too long under Georgia law and more closely mirrors general contract notice periods than the lien-waiver requirement. The correct answer is 10 days.
Memory Technique
Think '10 days to waive': after you get paid, you have one hand's worth of days (10 fingers = 10 days) to hand over the lien waiver.
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A subcontractor files a lien for $18,000 on a residential property. The general contractor disputes the amount, claiming only $12,000 is owed. What must happen before the lien can be foreclosed in Georgia?