Final answer:
The statement not true about a mechanic's lien is that its priority rights are not solely determined by the date of recording, but are often influenced by the commencement of the work or delivery of materials.
Liens need to be filed within a specified period and enforced by court action if necessary.
Step-by-step explanation:
The statement that is NOT true about a mechanic's lien is D. its priority rights are determined by the date of recording. Mechanics' liens typically have a priority based on the commencement of the work or the delivery of materials, rather than the date of recording the lien. Priority determines the order in which claims are satisfied in the event of foreclosure or sale of the property.
A mechanic's lien can be filed for the value of the cost of the improvement (A), and it must be filed within a specified time period (B), usually set by state law. Once filed, a mechanic's lien would typically need to be enforced by the court (C) if the debtor does not satisfy the debt, which would involve filing a lawsuit to foreclose on the lien.