Home>Levelset Community>Legal Help>I just filed a lien on a home in north carolina for work that was done. I was a subcontractor. I was under the impression it has to be a notice of claim of lien upon funds and not a lien? when I filed it with zlien it categorized it as a mechanics lien?

I just filed a lien on a home in north carolina for work that was done. I was a subcontractor. I was under the impression it has to be a notice of claim of lien upon funds and not a lien? when I filed it with zlien it categorized it as a mechanics lien?

North CarolinaMechanics Lien Right to Lien

I was hired by a GC (originally I along with 3 other contractors were told for a referral fee and then upon completion we were told we were a subcontractor.) I submitted my bill to the client (homeowner) and his insurance company before I was told I was a subcontractor. The original contract was with the GC and the homeowner. I completed the job. That is fine if I am a sub but now I can't get the GC to pay. I went on to zlien and filed the intent to lien and the lien as it stated but now I am not sure that is correct. Do I need to file as a tier 2 contractor and file under the notice of claim of lien upon funds? I restored the homeowners home after hurricane Florence.

1 reply

Jan 23, 2019

These are good questions, and I'm sorry to hear you've gone unpaid. North Carolina can be especially tricky when a lien filing becomes necessary, but let's break down the North Carolina lien products available in the zlien system for some clarity here. First, let's look at the Claim of Lien Upon Real Property for prime contractors. This is what most people think of when they think of a traditional mechanics lien. This product attaches directly to the property, and it's available for any user who contracts directly by the property owner. Keep in mind - regardless of what vernacular is used on a project, when contracting directly with the property owner, a claim of lien on real property is available and a lien claim does not need to be subrogated through some other party. For parties that were not hired directly by the property owner, a claim of lien against real property may still be made (1) through subrogation of the prime contractor's right to file; and (2) in response to the property owner wrongfully paying the GC after the owner has previously received a Notice of Claim of Lien Upon Funds (more on that in a moment). Finally, a Notice of Claim of Lien Upon Funds can be sent to "freeze" the funds between the owner and their prime contractor to stop the flow of money on a project. This product is also available to subs and suppliers. For more info on North Carolina liens, these two resources provide helpful information (and can help to clarify between the different types of lien claims available in North Carolina): (1) How to File a North Carolina Lien; and (2) North Carolina Lien & Notice FAQs.

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