Which of the following is true about mechanic's liens?

Mechanic's liens are a legal claim against a property that has not been paid for improvements or repairs made to that property. The correct answer emphasizes that mechanic's liens can indeed jeopardize a property’s title if not resolved or paid. This means that if the unpaid amounts remain, it can create complications for the property owner, particularly when trying to sell or refinance the property, as potential buyers or lenders will see the lien as a cloud on the title that needs to be cleared before proceeding with any transaction.

This principle is crucial for both property owners and lien claimants because it underlines the importance of fulfilling financial obligations associated with property improvements. If these liens are not addressed, they can lead to significant challenges in the ownership and transfer of property rights.

The incorrect options can help illustrate the broader context: mechanic's liens are not automatically removed upon a sale, meaning they're fixed to the property and remain until they are paid off, which counters the notion in the first option. They can apply to both residential and commercial properties, contradicting the statement that they are limited to residential properties alone. Lastly, while government authorities can file liens, mechanic's liens are primarily filed by contractors, subcontractors, and suppliers, which means the statement that they are filed