On November 5, 2014, Commercial Builders, Inc., contracted with Concord to construct a steel building that would house a motocross track. This contract called for Concord to begin construction ASAP, and Concord began construction. At the time the construction began, Concord had not yet closed on buying the property, but had been given the go-ahead by the owner for construction to begin.
The real estate sale ran into difficulties and did not close. At that time, the building was 85% complete. On January 4, 2015, Concord filed a mechanic's lien against the property. In September 2015, the partially constructed building was completely destroyed by a tornado. Commercial sought to foreclose its lien on the land. The owner said he did not give his consent for the work or a lien. Which of the following is correct?
A) Commercial builders cannot file a lien on the property because Concord did not own the property
B) Commercial builders cannot file a lien because there is no work to show for the costs
C) Commercial builders cannot file a lien for steel buildings
D) Commercial builders can file a lien because the consent of the owner was implied through the contract and the agreement for the building to begin
Correct Answer:
Verified
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