[Mamabear]

There is a question in the Ninja MCQ for REG that I am confused about:

Q: Which of the following liens generally requires the lienholder to give notice of legal action before selling the debtor’s property to satisfy the debt?

A: Both Mechanic’s and Artisan’s liens

My confusion lies in the fact that Mechanic’s liens are liens put on the property so they can be paid once the DEBTOR sells the property because it is a lien against real property for repairs/improvments. The lienholder wouldn’t actually be able to sell the property because they don’t have the right to sell real property. Can anyone help explain why it isn’t just Artisan’s liens?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[mla1169]

Think of a mechanics lien as literallr being at an auto mechanic. If you drop off your car for repair you aren't getting the keys back until you pay the bill in full . (If you have a mechanic that works any other way, email me his #!). So the mechanic basically has custody until the lien is released.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

Haven't seen this at all in Becker. Am I in trouble?

Actually, yes I have. My fault.

[Mamabear]

@mla–My notes from the Ninja Audio/Blitz say the car repairs that you mention is an example of an Artisan's Lien, not a Mechanics lien. Artisan's are supposed to be for personal property (cars) and Mechanics Liens are for real property (houses and land).

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Mamabear]

Can anyone help me understand this?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[MikeHoncho]

I think a mechanic's lien is similar to a mortgage. The mechanic's lien-holder has similar rights as a home mortgage lender.

For example, a bank loans you money to buy a house. The bank has a security interest in the house. You can't make the payments to the bank; the bank forecloses. During the foreclosure process the bank (or lien-holder) obtains the right to sell the house (the real property).

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Mamabear]

Okay–Now that makes sense. And they can't foreclose without proper notice. Thanks Mike!

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[MikeHoncho]

You got it! Good luck

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Author]

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