North Carolina Lien Law Under Review Again

The North Carolina General Assembly appointed a committee in 2013 to study a specific element of North Carolina Lien Law. The Lien Law Review Committee was initially charged with studying the impact of modifying lien law regarding leased real property.

Just recently, several other issues have popped up from industry groups interested in changing the North Carolina Lien Law again. One of these groups would like to have Potential Lien Claimants who provide notice to Lien Agents have the responsibility of later giving notice of full payment.

Another similarly situated group has put forth a proposal to modify the North Carolina Lien Law which could in effect greatly impact a suppliers right to claim a lien.

The North Carolina Constitution provides for adequate protection for those who improve real property with the protection of a lien on the property. With the recent changes implemented by the North Carolina Legislature, it appears that the adequate protection envisioned in the Constitution has been eliminated.

We are monitoring and working with several interested supplier associations to determine how best to protect the rights of suppliers.

We will continue to keep you updated.