Which statement describes a mechanic's lien and when it arises?

• A. A lien filed by a lender to secure a loan.
• B. A lien filed by a homeowner against a contractor.
• C. A lien filed by a contractor or supplier who provided work or materials and was not paid; arises when the work/materials are furnished and a claim is filed.
• D. A lien created automatically when a mortgage is recorded.

Answer: (C)

A mechanic’s lien is a security interest given to contractors or material suppliers who have provided labor or materials for a construction project and have not been paid. It arises when those services or materials are furnished and a lien is filed with the proper authority. This explains why the statement is correct: it identifies who can claim the lien (the contractor or supplier) and the triggering event (unpaid work or materials and filing the claim).

Other options describe different types of liens: a lender’s lien is a mortgage lien, not a mechanic’s lien; a homeowner typically cannot file a mechanic’s lien for someone else’s work; and a mortgage lien is created automatically when a mortgage is recorded.