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can a lien be put on my property

North CarolinaLicenses Mechanics Lien Right to Lien

my home is listed for sale. A unlicensed contractor stopped working for me by mutual agreement on October 26 2018.The cost construction est.at $90,000. On October 2 2019 he e-mails a bill for $ 17,327.22 for remediation that he never did- no dates provided.I requested dates the work was done.He does not answer my question. If i refuse to pay him, can he put a lien on my property?

1 reply

Oct 22, 2019

There are several different North Carolina mechanics lien regulations that will come into play here, so let's look at them one-by-one.

What amounts are subject to a mechanics lien?

It's possible that some payment may be owed when a contract is terminated - but, not all debts can be secured by a mechanics lien. Mechanics liens can be filed for amounts owed but unpaid for work performed. So, amounts that represent work which wasn't actually performed cannot be included in a mechanics lien claim. And, a lien claim that includes improper amounts will generall be invalid and unenforceable. Potentially, penalties could even come into play if a lien is filed (more on that below).

Can a North Carolina mechanics lien be filed by an unlicensed contractor?

North Carolina's mechanics lien statute actually doesn't require a license in order to file a valid and enforceable mechanics lien. We discuss that here: Can I file a North Carolina Lien if I'm unlicensed? However, a contractor who's held themselves out as a licensed contrator, but doesn't hold a license, may be guilty of a misdemeanor in North Carolina. Plus, unlicensed contractors in the state cannot enforce a filed mechanics lien, if a license was required for the work. So, even if a lien is filed by an unlicensed contractor, that lien couldn't be enforced - and there could be additional penalties in play for that contractor. To be sure - most contractors working on a job exceeding $30k must be licensed in order to perform that work.

**Mechanics liens can generally be filed, even if the claim will not be enforceable**

With all of the above being said, keep in mind that county recorder offices generally have neither the bandwidth nor the authority to investigate each lien claim that's filed. So, it's possible a lien claim could be filed even though it has a questionable basis. But, that doesn't mean the lien is valid or enforceable. And, if necessary, an owner would likely be entitled to challenge that filed lien claim through legal action. Further, threatening a lien claimant with legal action could be effective to keep them from filing their lien. If an owner can show that the lien claim would be flawed and could even result in fraud, damages, and a misdemeanor, that lien claimant may decide to steer clear of a lien filing. This is especially true when sent via attorney letter, demanding the claimant stand down or else face the applicable penalties.

Additional mechanics lien resources for property owners

I hope this has been helpful! Here are some additional resources I think might be valuable here: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now? (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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