{"id":772,"date":"2012-08-30T08:29:47","date_gmt":"2012-08-30T14:29:47","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=772"},"modified":"2012-08-30T08:29:47","modified_gmt":"2012-08-30T14:29:47","slug":"changes-to-north-carolina-mechanics-lien-laws","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/changes-to-north-carolina-mechanics-lien-laws\/","title":{"rendered":"Changes to North Carolina Mechanics Lien Laws"},"content":{"rendered":"

In July, Governor Perdue signed two bills into law which make substantial changes to the state\u2019s mechanics lien and bond laws.\u00a0 With respect to private projects, the most significant changes relate to the creation of \u201cLien Agents\u201d who must be placed on notice by any potential lien claimant.<\/p>\n

Beginning April 1, 2013, all private construction projects valued at $30,000.00 or more will require the designation of a Lien Agent.\u00a0 The project owner must designate the Lien Agent from a list of title insurance companies or insurance agents maintained by the N.C. Department of Insurance.\u00a0 The Lien Agent is entitled to collect a fee from the Owner of not more than $50.00.<\/p>\n

If a building permit is required for a project, the permit is required to identify the Lien Agent and be posted at the project site.\u00a0 If the building permit fails to identify the Lien Agent, or if no permit is posted, a lien claimant can submit a written request to the owner to identify the Lien Agent.\u00a0 The owner must respond to this request within seven (7) days.\u00a0 Likewise, a contractor or subcontractor must provide a materials supplier with written notice identifying the Lien Agent within three (3) business days of contracting with the supplier.<\/p>\n

Any potential lien claimant (i.e., contractor, subcontractor or materials supplier) who wishes to preserve its full lien rights must serve a Notice on the lien agent.\u00a0 Under the new statute, the Notice must include the following:<\/p>\n

    \n
  1. lien claimant\u2019s name, mailing address, telephone number, fax number and electronic mailing address<\/li>\n
  2. the name of the party with whom the potential lien claimant contracted<\/li>\n
  3. a description of the real property sufficient to identify it<\/li>\n
  4. notice of the potential lien claimant\u2019s right later to pursue a claimed lien for the improvements described in the Notice<\/li>\n<\/ol>\n

    In order to preserve all lien rights, the potential lien claimant must serve the Notice on the Lien Agent within fifteen (15) days after first furnishing of labor or materials to the project.\u00a0 Failure to file the notice of lien within this time can result in the termination of the claimant\u2019s rights if the property is sold or the subordination of the lien claimant to a new deed of trust or mortgage.\u00a0 The Notice must be served by one of several designated methods including physical service of the notice (with a receipt of delivery) or by certified mail, return receipt requested.<\/p>\n

    The requirement that Notices to a Lien Agent be served is mirrored in another change to the lien laws.\u00a0 Beginning January 1, 2013, all claims of lien on real property must be served on the owner, and a claim of lien on real property asserted by a subcontractor or supplier by subrogation must be served upon the contractor as well as the owner.\u00a0 Prior law allowed a claim of lien to be filed but not served.\u00a0 Beginning in January, a claim of lien on real property will not be perfected until it is both filed and served.\u00a0 Therefore, service and filing of the claim of a lien on real property must occur no later than 120 days from the last furnishing of labor or materials to the project by any person claiming the lien.<\/p>\n

    Owners, contractors, subcontractors and suppliers need to revise their current procedures with respect to potential lien claims to take into account the significant changes wrought by the recent session of the General Assembly.\u00a0 New forms for a Notice to Lien Agents need to be developed to accommodate the modifications required\u00a0 for lien claims on real property.<\/p>\n","protected":false},"excerpt":{"rendered":"

    In July, Governor Perdue signed two bills into law which make substantial changes to the state\u2019s mechanics lien and bond laws.\u00a0 With respect to private projects, the most significant changes relate to the creation of \u201cLien Agents\u201d who must be placed on notice by any potential lien claimant. Beginning April 1, 2013, all private construction… Continue reading Changes to North Carolina Mechanics Lien Laws<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[8],"tags":[213,12,184],"class_list":["post-772","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-rights","tag-building-permit","tag-construction","tag-mechanics-lien-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nChanges to North Carolina Mechanics Lien Laws - Advise & Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/changes-to-north-carolina-mechanics-lien-laws\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Changes to North Carolina Mechanics Lien Laws - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"In July, Governor Perdue signed two bills into law which make substantial changes to the state\u2019s mechanics lien and bond laws.\u00a0 With respect to private projects, the most significant changes relate to the creation of \u201cLien Agents\u201d who must be placed on notice by any potential lien claimant. 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