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.

This article explores common mistakes that our firm as seen that can invalidate a lien in North Carolina and provides guidance on how to avoid them.

1. Missing the Deadline to File the Lien

One of the most critical mistakes is failing to file the lien within the required statutory timeframe. North Carolina law sets strict deadlines:

• A Claim of Lien on Real Property must be filed within 120 days from the last date the lien claimant furnished labor or materials to the project.
• A Lien on Funds must be served before the party holding the funds disburses them.
• A lawsuit to enforce the lien must be filed within 180 days from the last furnishing date.

Failing to meet these deadlines can result in the lien being invalid and unenforceable.

2. Incorrectly Identifying the Property or Owner

A lien must accurately identify the real property being improved and the property owner. Common errors include:

• Using an incorrect legal description of the property.
• Listing the wrong owner due to a failure to verify property records.

To avoid this, lien claimants should conduct a title search or consult county property records before filing.

3. Overstating the Lien Amount

A lien must reflect only the amount legitimately owed for labor or materials provided. Overstating the lien, whether intentionally or by mistake, can lead to challenges, including:

• Legal claims for fraudulent filing.
• Possible invalidation of the entire lien.

To prevent this, claimants should ensure they document all costs accurately and avoid including unapproved or speculative amounts.

Perfecting a lien in North Carolina requires strict adherence to statutory requirements. Missing deadlines, providing incorrect property information, or overstating amounts can all render a lien invalid. Contractors, subcontractors, and suppliers should carefully follow the legal process to protect their lien rights. Vann Attorneys, PLLC has experienced construction attorneys who can assist you with the process of filing a claim of lien.