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Machinical lien

North Carolina

I flip houses. We hired a painter to paint turnkey service. I had paid them everything Except the final 40% of the contract. They refuse to come and finish the work because they said they were not making any money. I told them if they don’t finish according to the contract I will have to use funds to owed to finish the work. The painters filed an Machinical lien and I want to use a cash bond to release the lien. Is there any additional forms I need to fill out? How do I get my funds released back to me

1 reply

Feb 7, 2021
Yes, there are certain forms you will want to use, as there is specific language that defines when you are permitted to have your funds returned.  Depending on the amount owed, sometimes it makes more sense to get a surety bond so your funds aren’t tied up in the courts.  In most circumstances, if the painter fails to file a lawsuit to perfect his lien, you are eligible for return of your funds—but again, the language of the bond can be critical to your ability to get these back.  For instance, what if they file suit, but do so late?  If the bond language doesn’t require timely filing as a prerequisite to return of the funds, you could end up in limbo with the clerk’s office.  I’d be happy to assist you with it if you decide you want a lawyer to help.

Julia Kirkpatrick

(919) 782-1441

jkirkpatrick@bdppa.com

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