Construction professionals at work

We recently posted about the changes set to occur to North Carolina lien law, and noted that Claims of Lien on Real Property must now be served on the property owner (and general contractor) in addition to the previous requirement of being filed (and both must occur within the same 120 day time period in order for the mechanics lien to be perfected).  There is also another brief additional change related to that new service requirement.

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Beginning on January 1, 2013, commensurate with the new service requirement, the formal requirements of the Claim of Lien on Real Property are also modified to reflect the service requirement.  Starting on that date, a Claim of Lien on Real Property must include a certification of proper service, worded as follows: “I hereby certify that I have served the parties listed in (2) above [property owner (and general contractor)] in accordance with the requirements of G.S. 44A-11.”

Further, if the Claim of Lien on Real Property is claimed by a subcontractor through subrogation (pursuant to G.S. 44A-23), it is a new requirement that the name of the contractor through which subrogation is being asserted be listed on the face of the Claim of Lien.  While this is a technically a new requirement, it should probably not prove to be too difficult – and indeed, many lien claimants probably already included this information on their lien.  It is a requirement, though, so if a subcontractor fails to comply and does not name the general contractor on the subrogation lien claim the lien will be deficient.