A North Carolina contractor fails to pay a subcontractor $15,000 for completed work. The subcontractor files a lien claim. What is the maximum time period the subcontractor has to file the lien claim after the last day of work?
Correct Answer
D) 120 days
Under NC lien law, a subcontractor has 120 days from the last day of work to file a lien claim.
Why This Is the Correct Answer
Under North Carolina's lien statutes (N.C. Gen. Stat. § 44A), a subcontractor has 120 days from the last day it furnished labor or materials on the project to file a claim of lien on real property. This 120-day window is the outer deadline; filing earlier is always permissible. Missing this deadline extinguishes the lien right.
Why the Other Options Are Wrong
Option A: 60 days
60 days is not the North Carolina deadline for subcontractor liens. It may be confused with shorter deadlines in other states or with different lien-related timelines (e.g., some notice requirements). In NC, 60 days is too short.
Option B: 90 days
90 days is the deadline used in several other states (e.g., Texas for original contractors) but is not the North Carolina subcontractor lien deadline. Applying another state's timeline to an NC question is a common cross-state confusion error.
Option C: 180 days
180 days significantly exceeds the NC statutory deadline and is not the correct period for filing a subcontractor lien. No NC provision grants a 180-day window for this type of claim.
Memory Technique
Think '120 days = 4 months' for NC subcontractor liens. Four months gives the sub enough time to pursue payment before resorting to a lien. Remember: file the lien in 120 days, then enforce within 180 days if needed—two sequential deadlines.
More North Carolina Questions
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