A property owner discovers defective work 18 months after completion. The contractor's license expired 6 months ago. What recourse does the owner have under NC law?
Correct Answer
B) Can file claim against recovery fund
Even with an expired license, property owners can file claims against the NC contractor recovery fund for defective work within the statutory period.
Why This Is the Correct Answer
NC maintains a contractor recovery fund specifically to protect consumers harmed by licensed contractors. The fund covers claims for defective work even if the contractor's license has since expired, provided the claim is filed within the statutory period. The key qualifying factor is that the contractor was licensed at the time the work was performed, not at the time the claim is filed.
Why the Other Options Are Wrong
Option A: Must pursue civil action only
Civil action alone is not the only — or necessarily primary — recourse. NC's recovery fund exists precisely to give property owners an additional, more accessible remedy beyond civil litigation, especially when contractors are difficult to collect from.
Option C: Can file complaint with licensing board only
Filing a complaint with the licensing board addresses disciplinary action against the contractor but does not directly compensate the property owner for the defective work. The recovery fund is the vehicle for financial recourse.
Option D: No recourse due to expired license
The contractor's current expired license does not strip the owner of recourse. What matters is whether the contractor held a valid license when the work was performed. NC law protects consumers in this scenario through the recovery fund.
Memory Technique
The Recovery Fund looks BACKWARD, not forward — it asks 'Was the contractor licensed when the work was done?' not 'Is the license current today?'
More North Carolina Questions
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