MHIC NASCLA Contractors Practice Exam

Question: 1 / 400

Can the state record a lien against any real property owned by the contractor for a debt owed to the fund?

True

The statement is true because, generally, states have the authority to place a lien on real property owned by a contractor to secure repayment for debts owed to various state funds, particularly in cases related to contractual obligations, unpaid taxes, or contractor licensing requirements. This ability serves as a protection for the state, enabling it to recover funds and ensuring that contractors meet their financial responsibilities. When a lien is placed, it essentially serves as a legal claim against the property, which can affect the contractor's ability to sell or refinance their real estate until the debt is settled. Understanding the role of liens reinforces the importance of compliance with state regulations and financial obligations within the context of contracting work.

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False

Only if specified

Depends on state laws

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