Question

Law and Ethics

If a claim is not paid within a certain timer period, the claimant is required to file a mechanic' lien affidavit in the real property records in the county where the property is located. A mechanics lien affidavit is not a lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant is successful in litigation to enforce the lien claim.

A. True

B. False

Answer 1

(a) True

The 10 % amount that is withhold by you or by your lender for 30 days after the final completion or termination of work is called Statutory retainage but if you not choose to withhold 10 % amount to contractor after completion of work and a claim is made by claimant which your contractor fails to pay, you become personally liable and your property is subjected to lien after a claimant files a mechanic's lien affidavit in the country where property is located.