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Am i able to just cancel a mechanics lien on property but keep the claim on lien of funds?

North CarolinaLien on FundsLien PriorityLien Releases
Anonymous Contractor

We completed a job but missed the deadline for filing lien on property. We still want to get paid but our lawyer says we cant keep the lien on property. How do i cancel one without canceling the other?

1 reply

Levelset Admin at Levelset
| 1,005 reviews
Mar 23, 2020
The terms on a lien release will dictate what rights, exactly, are being released. So, if a claimant wants to release a mechanics lien against the property, but wants to leave their lien on contract funds in place, then the claimant can draw up paperwork which reserves their rights under their lien on funds while also releasing the mechanics lien against the project property. Of course, to be sure that only the desired rights are released, it'd be wise to have an attorney draft that release language or to at least have them review it. If the lien release purports to waive all payment rights on the project, then it's possible a claimant could forgo other rights - like rights under a lien on funds.
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