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NORTH CAROLINA

Tuesday, June 17, 2008

Lien law applies to all non-public work.

All claims of lien must be filed in the office of the clerk of superior court in each county wherein the real property subject to the claim of lien is located.

Claims of lien may be filed at any time after the obligation becomes due, but not later than 120 days after the last furnishing of labor or materials at the site of the improvement by the person claiming the lien.

All claims of lien must be filed using the form outlined in NC GS 44-A-12.

Contractors can be required to pay claims of second or third tier subcontractors, even though the subcontractor has been previously paid. To avoid double payment the contractor must:

  1. Within 30 days following the date that the building permit is issued, post on the construction site in a visible location adjacent to the posted building permit and file in the office of the Clerk of Superior Court in the county where the project is located, a completed and signed Notice of Contract form.
  2. After receiving a completed and signed Notice of Subcontract form from the second or third tier subcontractor, the contractor within five days following each subsequent payment must notify the second or third tier subcontractor of payments made to the first tier subcontractor, with whom the second or third tier subcontractor has a contract. The notice by the contractor shall specify the period covered by the payment and the date payment was made.

The forms to be used by the contractor and the second or third tier subcontractor are contained in NC GS 44A-23.