Final answer:
The North Carolina mechanics lien requirements include filing within a specific timeframe, serving notice to the lien agent, and designating a lien agent for certain residential construction projects.
Step-by-step explanation:
Answer:
The correct answer is:
D. A lien agent needs to be designated for private residential construction projects over $30,000 only.
Step-by-step explanation:
In North Carolina, mechanics liens are governed by specific requirements. A mechanics lien is a legal claim against property that is granted to contractors, subcontractors, or suppliers who have not been paid for their work or materials.
- A vendor needs to file a mechanic's lien within 120 days of the delivery of the vendor's last labour or materials. This is a requirement to protect the rights of the vendor.
- A lien agent is not required for a private construction project on a single-family home if the property is owner-occupied. This exemption allows owner-occupied homeowners to avoid the additional step and cost of designating a lien agent.
- A vendor will forfeit the mechanic's lien priority if the vendor does not serve notice to the lien agent within 15 days of furnishing material or labour. This notice requirement ensures that the lien agent is aware of the vendor's claim.
- A lien agent needs to be designated for private residential construction projects over $30,000 only. This requirement ensures that larger residential construction projects have a designated lien agent to handle potential mechanics lien claims. For projects under $30,000, a lien agent is not mandatory.