Which of the following is TRUE of a contractor who operates without a valid license?

• A. The contractor may file a lien at any time without providing a pre-lien notice.
• B. Any contractor's lien is automatically valid and they may obtain judgment.
• C. The contractor holds a valid "hold" on the mortgage for a period of 90 days.
• D. The contractor has no legal right to claim a lien.

Answer: (D)

A contractor who operates without a valid license does not have the legal right to claim a lien. This is because, under Minnesota law, contracting without the appropriate licensing voids any claims to enforce a lien. A lien is a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied. The requirement for a valid license ensures that contractors meet certain standards and regulations, promoting professionalism and protecting consumers. Without the proper licensing, a contractor's work may be considered unauthorized, thus nullifying their ability to secure a lien for unpaid work or materials.

The other options suggest scenarios that misrepresent the rights of an unlicensed contractor. For example, filing a lien without a valid license does require specific legal procedures to be followed, which are not available to someone lacking a valid license. Overall, the absence of proper licensure fundamentally undermines the contractor’s ability to leverage legal protections like filing a lien.