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 might the homeowner experience?

a. The contractor may place a mechanic's lien for the amount of the lumber against the homeowner's real property.b. The lumber yard may place a vendor's lien against the contractor and the homeowner for the amount of the lumber.c. The lumber yard may place a mechanic's lien for the amount of the lumber against the homeowner's real property.d. The homeowner has no liability because the contractor was paid for the lumber.

Answer 1

b. The lumber yard may place a vendor's lien against the contractor and the homeowner for the amount of the lumber.

Step-by-step explanation:

This is because, even though the lumber yard person was hired by the contractor to do the job for the client, he is still within his legal right to place a vendor's lien against both of them.

It will force the client to reach across to the contractor inorder to know the reason why the vendor was not paid.