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Can a general contractor put a mechanic's lien on a house if he did not finish the work?

North CarolinaMechanics Lien

I am a Realtor. My client hired a contractor to do work on the home they are purchasing. The document my client signed says that they are paying the contractor to do XYZ per engineer report for X amount of dollars. The work was not completed and he wants the other half of his money but my client said he is not paying until the work is finished correctly. The contractor said he is going to put a mechanic's lien on the house? Is that possible even though he did not complete what was stated and we have proof of photos?

1 reply

Sep 13, 2019
The short answer is yes, the contractor could file a lien, even if the lien will later be found invalid (and he could be responsible for slander of title).  If he does, your client can bond off the lien by paying cash to the clerk of court for the county.  The money will sit there until resolution, and should not affect the sale going forward in that case.  (There may be some additional headaches re affidavits to protect the bank). If the contractor perfects his lien by filing a lawsuit, your clients would need to assert timely defenses that he didn't finish the work correctly.  Often, contractors won't perfect the lien, in which case it will become void by itself, and your clients would be able to petition the clerk to release the funds back to them. It's a pain, but this should not affect the sale.  (Insert usual disclaimer that I'm not your lawyer and am basing this on the general information provided)
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