Asked by Sydney Ghanayem on Jun 04, 2024
Verified
Ranch West owes Silo & Barn Inc. $5,000 on their contract, but refuses to pay. To collect, Silo files a mechanic's lien, under which security for the debt is represented by
A) Ranch's personal property.
B) Ranch's real estate.
C) the $5,000 owed on the contract.
D) property held by a third party.
Mechanic's Lien
A legal claim against a property for unpaid construction work or supplies, giving the lienholder a right to a certain value if the property is sold.
Real Estate
Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.
- Comprehend the order of importance and usefulness of liens in the repayment of debts.
Verified Answer
SE
Shaun EdwardsJun 11, 2024
Final Answer :
B
Explanation :
A mechanic's lien typically provides security for a debt through a claim against the debtor's real estate, not personal property or other forms of collateral. This type of lien ensures that the party filing the lien (in this case, Silo & Barn Inc.) has a legal claim to the property equivalent to the amount owed until the debt is paid.
Learning Objectives
- Comprehend the order of importance and usefulness of liens in the repayment of debts.