The Importance of Filing a Lien on the Correct Property in North Carolina

By Anna A. Rodriguez
Attorney at Law

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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.

Why Accuracy Matters

  1. Legal Validity – North Carolina lien laws require strict compliance. If a lien is filed on the wrong property or contains incorrect legal descriptions, courts may reject the claim, leaving the filer without recourse.
  2. Protection of Rights – Filing on the right property ensures that the filer retains the right to foreclose on the lien if necessary. If a lien is placed on an unrelated or misidentified property, enforcing it becomes impossible.
  3. Avoiding Legal Disputes – Property owners who find a lien mistakenly filed against their land may seek to have it removed or even pursue legal action against the filer for wrongful encumbrance.
  4. Timeliness – In North Carolina, mechanics’ liens must be filed within 120 days of the last furnishing of labor or materials. Discovering an error after the deadline can prevent a lien from being refiled correctly.

Best Practices for Filing a Lien in North Carolina

  • Verify Ownership Records – Check county property records to confirm ownership and legal descriptions.
  • Use Accurate Property Descriptions – Include the correct address, parcel number, and legal description from the county deed records.
  • Consult a Professional – If unsure, consulting an attorney or title professional can help ensure accuracy and compliance.

Filing a lien is a powerful tool for securing payment, but only if done correctly. Ensuring that the lien is placed on the correct property is essential for preserving legal rights and avoiding costly mistakes.

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