North Carolina Contracting Law, Liens & Contracts
North Carolina's lien statute protects a contractor's right to payment, and its lien-agent system adds a notice step unique to the state. This chapter reviews Chapter 44A liens, the key deadlines, and the lien-agent requirement.
Construction liens under Chapter 44A
Chapter 44A of the North Carolina General Statutes governs statutory liens, including the claim of lien on real property available to contractors, subcontractors, and material suppliers who improve property and are not paid. The law defines who may claim a lien, how priority is established, and the steps to perfect and enforce the lien. It is distinct from Chapter 87, which governs licensing.
Filing and enforcement deadlines
A claim of lien on real property must be filed with the clerk of superior court within 120 days after the last furnishing of labor or materials to the project. An action to enforce the lien must be commenced within 180 days of the last furnishing. These deadlines are strict; missing them generally forfeits the lien and leaves the contractor to pursue ordinary contract remedies.
The lien agent requirement
For improvements costing $30,000 or more — with a statutory exception for certain owner-occupied single-family residences — the owner must designate a lien agent, commonly through the LiensNC system. Potential lien claimants serve notice to the lien agent to preserve their lien priority. This system is designed to give owners and lenders a clear picture of who may claim a lien before closing or paying out funds.