The Owner of the House Had Contracted with a General

Multiple Choice

The owner of the house had contracted with a general contractor, Mr. Hadrian, for a greenhouse addition to the house at a cost of $20,000. In accordance with legislation, the owner withheld 10% and waited the legislated period of time within which any liens were to be filed. Which of the following correctly describes the owner's liability?

A) The owner is liable to any unpaid subcontractors, whether or not a lien was filed, but can use the holdback money to reduce his liability a certain extent.
B) Whether or not there are liens registered, the owner is free to pay out the retained holdback once the legislated time period has expired.
C) Unpaid subcontractors can no longer place liens on the owner's property because of the doctrine of privity of contract.
D) If the owner checks the registry and there are no liens registered, he is free to pay out the retained holdback.
E) Lien holders would have no claim against the property but would be entitled to the 10% holdback, in addition to being able to sue the owner for the amount not satisfied by the holdback.