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What should be my next step after contractor is trying to file a lien on my home for a cancellation fee.

North CarolinaMechanics Lien Right to Lien

I hired a roofing contractor that called me two days before the job was scheduled to start and told me they could not find contractors to do all the work. I stressed to them in the beginning that I only wanted to deal with one contractor. I in turn hired another contractor and now the other company is trying to file a lien on the property for a $1500.00 cancellation fee.

1 reply

Jul 16, 2020

Mechanics lien claims are only available to the extent that work has been done but not paid for at the project property. And, even if a contractor has an enforceable cancellation fee in their agreement, amounts that don't directly relate to the improvement of the property are generally not lienable. If the contractor does end up filing a mechanics lien for a cancellation fee, that lien will end up being invalid and unenforceable, in all likelihood. What's more, § 44A-24 of North Carolina's mechanics lien statute creates stiff penalties for improper liens. If the lien contains a false statement, the claimant will face a Class 1 misdemeanor and may be liable for damages, attorney fees, court costs, etc. If your contractor is threatening a lien claim, letting them know you understand your rights and that you aren't afraid to contest their claim might help force them to stand down. Additionally, these articles may be useful: (1) I Just Received a Mechanics Lien Threat – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now? And, if it looks like a lien claim is imminent, it might be time to consult a North Carolina construction lawyer: Find a North Carolina Construction Lawyer.

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