A homeowner has hired a contractor to build a room addition. The work has been completed and the contractor has been paid for all work and materials but fails to pay the lumber yard for a load of lumber. What potential problem may the home owner experience.

Question

Charlee

Social Studies

8 May, 03:10

A homeowner has hired a contractor to build a room addition. The work has been completed and the contractor has been paid for all work and materials but fails to pay the lumber yard for a load of lumber. What potential problem may the home owner experience.

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Answers (1)

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Jordon Farmer · Answer 1

The main potential problem that the homeowner will face in this case is a mechanic's lien.

Explanation:

A mechanic lien is a security interest in the title to the property and is used in case of the general contractor is not financially able. In this case, the lumber yard may place a mechanic's lien for the amount of the owed load of lumber.