Paralegal Advanced Competency Exam (PACE) Practice Exam

Who typically files a mechanic's lien?

1. Homeowners selling their property

2. General contractors, subcontractors, or suppliers

3. Real estate agents closing a sale

4. Property owners buying materials

The correct answer is: General contractors, subcontractors, or suppliers

A mechanic's lien is a legal claim against a property that is filed by individuals or companies that have provided labor, materials, or services to improve that property. This tool is particularly important in the construction industry as it secures payment for work performed or materials supplied. Usually, general contractors, subcontractors, or suppliers are the ones who file these liens to ensure they are compensated for their contributions to a construction project. Mechanic's liens serve as a means of protecting the financial interests of those who enhance or repair a property when it comes to payment disputes. This legal remedy is essential in this sector where large sums of money are often involved and contracts may not always guarantee immediate payment. Other roles in real estate, such as homeowners selling their property or real estate agents closing a sale, do not typically have the need or basis to file a mechanic's lien. Property owners buying materials may have a stake in the financial aspects of the transaction, but they would not file a lien themselves; rather, they would be the ones who might be affected by a lien if they fail to pay for services or materials provided. The focus on contractors, subcontractors, or suppliers highlights their direct involvement in property improvement and their right to seek payment through a mechanic's lien