Question

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.

Answer 1

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

Step-by-step 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.