When unpaid contractor work creates a lien, it's called:
Correct Answer
D) Mechanic's lien
A mechanic's lien is the statutory claim a contractor, subcontractor, laborer, or material supplier records against real property when it has not been paid for work or materials that improved that property. It is involuntary and specific: the owner's consent is not required, and the lien attaches only to the improved parcel. Every state has a mechanic's lien statute, and each sets its own deadlines for preliminary notice, recording, and foreclosure.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
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