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Breech of contingency agreement

North Carolina

I'm a local roofer. I have a customer that has signed the contingency. She has decided to not move forward with us after we have gotten her approved. And our contingency she agreed to or signed to paying us a cancellation fee. She's trying to sell her home so I needed to find out what kind of liem can I place on her home or what can I do.

1 reply

Aug 12, 2019
Generally, mechanics lien rights attach as a function of labor or material being furnished to improve property, or specially fabricated material being created. So, to the extent a contract for work is agreed to, but no work was performed nor materials furnished, a mechanics lien is likely not going to be the appropriate remedy. Since mechanics liens encumber the property itself, there must be some benefit to the property in order for the lien to attach. Also, depending on the value of the work noted on the original building permit, a preliminary Notice to Mechanics Lien Agent must be provided in order to retain the right to file a mechanics lien. If a project in North Carolina is $30,000 or more, a lien agent must be designated. While mechanics lien rights may be dependent on the actual furnishing of labor or material to the project, there are other remedies for breach of contract. A lawsuit may be filed, or threatened, in order to attempt to get cancellation-fee payment. Depending on the amount at issue, the case may be brought in small claims court to avoid some of the time and expense of dealing with a regular full-scale lawsuit.
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