Holtz Hires Joe, a Builder, to Convert His Attic into an Apartment

question 133

Multiple Choice

Holtz hires Joe, a builder, to convert his attic into an apartment, so that Holtz's mother can move in. Joe employs two carpenters, an electrician, and a plumber to do the actual work. When making payments to Joe, Holtz holds back the 10% required by statute. After waiting the legislated minimum period, Holtz discovers that several liens have been registered against his property. It turns out that Joe failed to pay the various subcontractors for their work. Which one of the following statements best describes Holtz's position?

• A) Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property.
• B) Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations.
• C) If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater.
• D) Holtz and Joe are equally liable to the lien claimants, because of recent amendments to the builders' lien legislation.
• E) Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe.

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