Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Any person who performs labor, furnishes material, provides professional design, or surveying services pursuant to a contract (express or implied) with an owner of an interest (fee, leasehold, contract purchaser) of real property to make improvements upon the same. NC GEN STAT § 44A-8 DEADLINE TO PERFECT Claim of lien must be filed within 120 days after the last furnishing of labor or materials by the person claiming lien. NC GEN STAT § 44A-12 Action to enforce a claim of lien on real property must be filed within 180 days of last furnishing by the claimant. NC GEN STAT § 44A-13 Will not be valid against purchasers or mortgage lenders if notice was not made to lien agent in Liens NC registry pursuant to NC GEN STAT § 44A-11.2. If the owner or contractor files and posts a Notice of Contract within 30 days after being awarded contract or permit is issued for improvement, whichever is later, second or third tier subcontractor must file notice of subcontract to receive notice of each payment. NC GEN STAT § 44A-23 BROKEN PRIORITY Date of lien relates back to the time of the first furnishing of labor or materials under a continuous contract. “Commencement” must be visible. Can include clearing of site and staking of building outlines. Frank H. Conner Co. v. Spanish Inns Charlotte, Ltd., 294 N.C. 661, 672, 242S.E.2d 785, 792 (1978) or providing of design professional services, such as architects and engineers. Dalton Moran Shook v. Pitt Development, 113 N.C.App. 707, 440 S.E.2 585 (1994). EXCEPTIONS: Purchase Money DOT: will generally have priority regardless of date of commencement. NC GEN STAT § 44A-10 DURATION OF LIEN Lien will be lost if not enforced within 180 days of last furnishing of labor or materials at the site. NC GEN STAT § 44A-13(A) CONTENTS OF LIEN (1) Certified statement; (2) name and address of lien claimant; (3) name and address of record owner at the time lien filed or contractor through which subrogation is asserted; (4) name and address of person lien claimant contracted with; (5) date upon which labor/materials first furnished by claimant; (6) date upon which labor/materials last furnished by claimant; (7) description of labor/ materials; and (8) description of real property sufficient for ID (address, tax lot, etc.). Substantial compliance required. Errors will be deemed fatal unless obvious errors. Beach & Adams Builders, Inc. v. Northwestern Bank, 1975, 220 S.E.2d 414, 28 N.C.App. 80 NC GEN STAT § 44A-12 NC GEN STAT § 44A-23 NORTH CAROLINA NORTH CAROLINA – 536 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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