A pipe in Gert's house springs a leak. Gert contracts with Holly's Plumbing & Construction Company to repair the pipe and fix the damage to Gert's house. Gert pays 10 percent of the price in advance. Holly's does the work, but Gert refuses to pay the rest of the price. What can Holly's do, and how is it done?
What will be an ideal response?
Holly's can place a mechanic's lien on Gert's house. State law governs mechanic's liens. Under that law, if a property owner in Gert's situation does not pay what he or she owes, the house can be sold to satisfy the debt. The only requirements are that the lien be filed within a specific time from the time of the work, depending on the applicable statute, which usually specifies 60 to 120 days. Notice of the foreclosure and sale of the house must be given to Gert in advance. The proceeds from the sale are used to pay the debt and the costs of the proceedings, with any surplus paid to Gert.
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