North Carolina General Contractor Exam — All Questions

North Carolina's mechanic's/construction lien on real property is governed by which chapter of the General Statutes?

• a.Chapter 44A (Statutory Liens)✓
• b.Chapter 20 (Motor Vehicles)
• c.Chapter 105 (Taxation)
• d.Chapter 87 (Contractors)

Chapter 44A of the North Carolina General Statutes governs statutory liens, including the claim of lien on real property available to contractors, subcontractors, and suppliers. (Chapter 87 governs contractor licensing, a separate topic.)

Under North Carolina lien law, within how long after the last furnishing of labor or materials must a claim of lien on real property be filed?

• a.Within 3 years
• b.Within 45 days
• c.Within 120 days✓
• d.Within 15 days

A claim of lien on real property must be filed with the clerk of superior court within 120 days after the last furnishing of labor or materials. An action to enforce the lien must then be started within 180 days of the last furnishing. These deadlines are strict.

For many North Carolina construction projects, the owner must designate a 'lien agent.' When is a lien agent generally required?

• a.Only when the project cost exceeds $5,000,000 and the owner is a corporation, partnership, or limited liability company
• b.Only for public government buildings
• c.Never; North Carolina abolished lien agents
• d.When the project cost is $40,000 or more (with an exception for certain owner-occupied single-family residences)✓

Under G.S. 44A-11.1(a), an owner must designate a lien agent for improvements to real property where the costs of the undertaking are $40,000 or more. The owner need not designate one for improvements to an existing single-family residential dwelling unit that the owner occupies as a residence. Potential lien claimants give notice to the lien agent to preserve their rights.