The Impact of a Claim of Lien on Property Owners and General Contractors in North Carolina By Anna RodriguezAttorney at Law Construction projects in North Carolina involve multiple layers of contractors, subcontractors, and suppliers. When payment disputes arise, mechanic’s liens—known in North Carolina as claims of lien on real property—are among the most powerful legal remedies available to those who …
Mechanics’ liens serve as a powerful tool for contractors, subcontractors, and suppliers to secure payment for labor and materials provided on a construction project. However, North Carolina law imposes strict procedural requirements for perfecting a lien, and even minor mistakes can render a lien unenforceable.
Construction contracts often include provisions governing payment terms between general contractors and subcontractors. One such provision is the “pay-if/when-paid” clause, which dictates that a subcontractor will receive payment only after the general contractor has been paid by the project owner. While “pay-if/when-paid” clauses may be enforceable in Arizona, Colorado, Georgia, Florida, Illinois, Michigan and Maryland, such clauses are unenforceable in the state of North Carolina.
In North Carolina, filing a lien is a critical step for contractors, subcontractors, and suppliers seeking to secure payment for labor or materials provided on a construction project. However, filing a lien on the correct property is just as important as filing one at all. A mistake in identifying the property can render the lien invalid and jeopardize the ability to collect payment.
When it comes to debt collection, a judgment lien can be a powerful tool for creditors. A judgment lien is created via a judgment against a defendant. This judgment lien allows a creditor to secure an interest in a debtor’s property. In North Carolina, this judgment lien gives the creditor the right to collect the debt by seizing and/or selling the debtor’s property, assets, and bank accounts if the debt remains unpaid.
We discuss the current law in North Carolina regarding Lien Waivers, Lien Cancellations and other Related Issues. We look at specific wording for lien waivers and cancellations. We discuss when to use conditional language and look at a few real-life examples of forms being used. If your company is asked to sign lien waivers, this webinar will be helpful to you. This webinar is be hosted by attorneys James Vann and J.D. Hensarling.
In this session of the Vann Attorneys Video LegalPad, Jim Beck discusses whether or not one can file a lien in North Carolina.
In this episode of the Vann Attorneys Legal Pad Podcast Attorneys James Vann and Ian Richardson discuss the basics of mechanics liens and what to do if your property has a lien filed upon it. Who may assert a lien? When must you assert? When must you sue to enforce? Where do you assert lien? What is the role of a lien agent? James and Ian cover these topics and more.
In this session of Vann Attorneys Video LegaPad Jim Beck discusses “What You Need to Know About Construction Lien Waivers”.
We will discuss common contract provisions regarding when payment is due in the construction setting in North Carolina. We will look at “Pay When Paid” provisions, “Paid if Paid” provisions, North Carolina law regarding Payments to Subcontractors and Pay Application language.
“Should I sign this lien waiver?” This question is raised by construction professionals often, and the answer depends on numerous factors. The subject of lien waivers is loaded with confusion, misunderstanding, and all too often, conflict.
Have you been paid for the material you sold to improve real property? The legal rights of a lien claimant in the construction industry includes a breach of contract remedy as well as the extraordinary remedies provided by the mechanics liens laws. The legal rights of a lien claimant can include a claim of lien upon the real property improved and the funds due to the parties involved with the construction. While the contractual claim is generally a well-known claim among most credit professional, the mechanics lien remedy can be complex and often ignored or misunderstood. Frequent failure to assert valid claims by those otherwise entitled to do so and the unnecessary cost of needless litigation is generally the result of a lack of knowledge about the applicable lien law.
We get quite a few questions on a regular basis where someone has provided labor and/or parts and service to a piece of construction equipment, motorized vehicle and now even electric vehicles and you have not been paid. What should you do? Is it possible that you can keep the equipment or sell it, even if the title owner was not the person who asked you to repair it?
As we all know, it is important to know who you are contracting and working with in the business context. Especially when there is a business entity involved. Do you know the actual and correct business name? In the construction trade, if the company says they are owner of real estate, does that matter for lien rights?
As an initial matter, it is worth pointing out that a sub-contractor’s best bet for getting paid is to timely file a mechanic’s lien within 120 days of the last day of furnishing labor or materials. However, sometimes, things happen. This has been particularly true recently with COVID-19 related shutdowns, delays, and closures. If you are a sub-contractor who needs to be paid, but you find yourself outside of the 120-day mechanic’s lien filing window, you have another lien option: a claim of lien on funds
“Can I recover my attorney’s fees?” is a question we often receive at the outset of litigation. The general rule in North Carolina is that each party is responsible for its own attorney’s fees, unless the contract or a statute provides otherwise.
Vann Attorneys will be hosting this webinar on Thursday, October 19, 2017 from 3:00 to 3:30 p.m. North Carolina Lien Law in 2017: Three Important Things to Remember. Join us as we discuss the current lien law for North Carolina. We will identify three areas of the law that are important to remember as subcontractors and/or suppliers.
The North Carolina General Assembly is considering Senate Bill 602 which will modify the existing law concerning Lien Agents and the North Carolina Lien law. The bill provides a new provision to the existing law which would provide a way for a Lien Claimant to give notice of cancellation of the Notice to the Lien Agent upon full payment.
Thursday, January 28, 2016 from 3:00 to 3:30 p.m.Vann Attorneys Webinar: 6 Steps for Collecting Accounts Receivables in 2016 Submit your questions in advance by email and social media:Email: webinar@vannattorneys.comTwitter: https://twitter.com/VannAttorneys and #NCLienLawFacebook: https://www.facebook.com/pages/Vann-Attorneys/102230089840384 Presenters: James R. Vann Attorney at Law Vann Attorneys Complimentary for Clients & Guests Webinar ID: 111-886-499
Wednesday, March 16, 2016 from 3:00 to 3:30 p.m.Vann Attorneys Webinar: 2016 Lien Law Update North Carolina Lien Law in 2016: Three Important Things to Remember. Join us as we discuss the current lien law for North Carolina. We will identify three areas of the law that are important to remember as subcontractors and/or suppliers. Submit your questions in advance by email …
