Calculate the lien amount a subcontractor can claim on a $180,000 project where they provided $35,000 in materials and labor, but the general contractor still owes them $12,000:
Correct Answer
B) $12,000
Under NC lien law, a lien can only be filed for the amount actually owed, which is $12,000, not the total value of work performed.
Why This Is the Correct Answer
Under NC lien law, a subcontractor's mechanic's lien is limited to the amount actually owed and unpaid by the party above them in the contracting chain — here, the general contractor still owes $12,000. The lien amount is not based on the total value of work performed or materials supplied, but on the outstanding balance.
Why the Other Options Are Wrong
Option A: $35,000
$35,000 is the total value of materials and labor the subcontractor provided, but NC law does not allow a lien for the full contract amount — only for the unpaid balance actually owed.
Option C: $23,000
$23,000 ($35,000 − $12,000) represents what has already been paid, not the lien-eligible amount. There is no legal basis for filing a lien for the portion that has been satisfied.
Option D: $47,000
$47,000 ($35,000 + $12,000) combines total work value with the unpaid balance, which is a nonsensical calculation with no basis in NC lien law.
Memory Technique
Think 'Lien = What's Left.' You can only lien for money still owed — the leftover unpaid balance, not your total invoice.
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