A North Carolina contractor fails to pay subcontractors $45,000 on a residential project. Under NC lien law, what is the maximum time period after substantial completion that a subcontractor has to file a claim of lien on real property?
Correct Answer
C) 120 days
Under NC lien law, subcontractors have 120 days from substantial completion to file a claim of lien on real property.
Why This Is the Correct Answer
Under NC General Statutes Chapter 44A, subcontractors have 120 days from the last furnishing of labor or materials (or from substantial completion) to file a Claim of Lien on Real Property. Missing this deadline extinguishes the lien right permanently.
Why the Other Options Are Wrong
Option A: 60 days
60 days is too short — that is not the NC statutory deadline for filing a lien claim. Confusing this with other states' lien deadlines or with notice requirements is common.
Option B: 180 days
180 days is too long and is not the NC deadline for filing a lien claim on real property. It may be confused with the time to enforce (file suit) on a perfected lien, which has a separate longer deadline.
Option D: 90 days
90 days is not the NC deadline. While some states use 90 days, North Carolina specifically requires 120 days. This distractor targets candidates who guess based on general knowledge rather than NC-specific law.
Memory Technique
120 days = 4 months. Think: a subcontractor has a full season (one quarter of the year plus one month) to file after substantial completion. '4 months to file' is your anchor.
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