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Understanding the Nuts & Bolts of LiensNC
The mechanics' lien agent system was created to facilitate Chapter 44-A, Article 2, of the NC General Statutes. The law affects all projects commenced on or after April 1, 2013.
The legislation was enacted to address the so-called 'hidden lien' problem associated with construction projects. Existing mechanics' lien law had no mechanism for contractors, subcontractors or suppliers to publish their participation in a project. Consequently, purchasers, lenders and closing attorneys would be unable to determine who had worked on a construction project and deserved to be paid - often until long after closing.
READ THE FULL LAW
The mechanics' lien agent system allows (but does not require) potential lien claimants to give notice they are working on a project. Then closing attorneys, lenders and purchasers will have the ability to address those known potential lien claimants at closing.
We at LiensNC cannot give you legal advice or share our opinion and/or interpretation of the law. If you need assistance with any aspect of the law, we encourage you to contact a NC attorney.
EXEMPTIONS
FIND AN ATTORNEY:
The legislation was enacted to address the so-called 'hidden lien' problem associated with construction projects. Existing mechanics' lien law had no mechanism for contractors, subcontractors or suppliers to publish their participation in a project. Consequently, purchasers, lenders and closing attorneys would be unable to determine who had worked on a construction project and deserved to be paid - often until long after closing.
READ THE FULL LAW
The mechanics' lien agent system allows (but does not require) potential lien claimants to give notice they are working on a project. Then closing attorneys, lenders and purchasers will have the ability to address those known potential lien claimants at closing.
- The law went into effect on April 1, 2013.
- It involves a simple 3-step process:
- Register the project by filing an Appointment of Lien Agent,
- Include potential lien claimants' contact information by filing Notice(s) to Lien Agent, and
- Perform a search to see any NC construction projects registered in the online system.
We at LiensNC cannot give you legal advice or share our opinion and/or interpretation of the law. If you need assistance with any aspect of the law, we encourage you to contact a NC attorney.
EXEMPTIONS
FIND AN ATTORNEY: