What is an example of a common situation where a mechanic's lien might be applied?

A mechanic's lien is a legal claim that allows construction professionals, such as contractors and subcontractors, to seek payment for work performed on a property when they are not paid. This lien serves as security for the amount owed and can be placed against the property itself.

The situation of non-payment for construction work directly aligns with the purpose of a mechanic's lien. When a contractor has completed work on a property and has not received payment, they have the right to file a mechanic's lien to ensure they can recover the owed amounts. This also protects their financial interest in the property they have improved.

Mechanic's liens arise from specific labor or materials used in the construction or improvement of a property, making this option the most fitting example among the choices given. The other scenarios—relating to homeowners association fees, sales contracts, and lease contracts—do not involve the direct provision of labor or materials to a property, therefore they do not constitute typical situations where a mechanic's lien would be applicable.