New York State Real Estate Salesperson Licensing Exam

If Joe was not paid for the supplies and labor he provided, what kind of lien will he file against homeowner Smith?

1. Judgment lien

2. Mechanics lien

3. Mortgage lien

4. Tax lien

The correct answer is: Mechanics lien

Joe would file a mechanics lien against homeowner Smith because he provided supplies and labor related to a construction or improvement project on the property. A mechanics lien is specifically designed to protect the rights of contractors, subcontractors, and suppliers who have not been compensated for their work and materials provided in a construction context. It allows them to secure payment by placing a claim against the property until the debt is settled. This lien is instrumental in ensuring that individuals or companies who enhance a property's value through their services are compensated for their efforts. In contrast, a judgment lien arises from a court ruling against a debtor, a mortgage lien pertains to loans secured by real estate, and a tax lien is applied to property for unpaid taxes. Each of these is distinct from the situation involving Joe, who is seeking payment specifically for work done on Smith's property.