A contractor performs work on a residential property in North Carolina but is not paid. The work was completed on March 15th, and the last material was delivered on March 20th. What is the deadline to file a claim of lien?
Correct Answer
B) July 20th
Claims of lien must be filed within 120 days of the last furnishing of labor or materials. The last material delivery date of March 20th determines the 120-day deadline of July 20th.
Why This Is the Correct Answer
Under North Carolina lien law, a claim of lien must be filed within 120 days of the last furnishing of labor or materials to the project. Since the last material was delivered on March 20th, this becomes the trigger date for the 120-day deadline calculation. Counting 120 days from March 20th brings us to July 20th, making this the final deadline to file the lien claim.
Why the Other Options Are Wrong
Option A: July 15th
July 15th incorrectly uses the work completion date of March 15th as the starting point for the 120-day calculation. However, North Carolina law requires using the date of the last furnishing of labor or materials, which was March 20th when the final materials were delivered.
Option C: May 20th
May 20th appears to calculate only 60 days from the last material delivery date of March 20th. This falls short of the required 120-day period mandated by North Carolina lien law for filing claims of lien on residential properties.
Option D: May 15th
May 15th incorrectly uses both the wrong starting date (March 15th work completion instead of March 20th last material delivery) and calculates only 60 days instead of the required 120-day period under North Carolina lien statutes.
Memory Technique
Remember 'LAST 120' - Always use the LAST date of labor or materials, then count 120 days forward. The last event (materials on March 20th) plus 120 days equals July 20th.
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