Blog

Thursday, September 29, 2016

North Carolina's Mechanics' Lien and Bond Laws - Part 4

Part 4 of a Continuing Series


This article by Attorney Lee Peindl is one of a continuing series of articles that focuses on legislation affecting North Carolina's Mechanics' Lien and Bond Laws.  It is adapted from Attorney Lee Peindl's seminar on Lien Law changes.

Contractors’ Lien Waivers and Subcontractors’ Lien Rights—Effective April 1, 2013
(N.C. Gen. Stat. §44A-23)


A Contractor’s Lien Waiver May Not Prejudice a Subcontractor’s Lien Rights

Currently, a lien waiver signed by the contractor before a subcontractor files a lawsuit to enforce its Claim of Lien On Real Property waives the subcontractor’s right to enforce the contractor’s lien on real property (e.g., a contractor’s lien waiver waives a subcontractor’s subrogated lien rights).

Effective April 1, 2013, N.C. Gen. Stat. § 44A-23 will provide that a contractor’s lien waiver will not prejudice the rights of the subcontractor if:

(1)        the subcontractor has given notice to the Lien Agent;

(2)        the subcontractor has served a notice of claim of lien upon funds on the owner; and

(3)        the subcontractor has delivered a copy of the notice of claim of lien upon funds served upon the owner to the Lien Agent.


We will examine this topic in further detail in upcoming blog posts.

In case you missed them here is Part 1Part 2 and Part 3

If you are in need of legal assistance with this type of matter please fill out our potential client intake form so that Attorney Peindl can evaluate your legal matter.Save