North Carolina
Notice of Claim of Lien-Private Work

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Note: This information is limited in scope and applies only to this document. Please see the general information, all forms memo, and the general information memo for this type of document, for additional information.

Document Title: Claim of Lien on Real Property.

Scope: State of North Carolina, Private Works.

Special Note: Venue for all proceeding must be in the county where the project is located. Any contractual language specifying venue outside this county is invalidated by statute.

Time Constraints: You must file your Notice of Claim of Lien with the County Recorder's office and serve your upon the owner and your customer after the debt becomes due but within 120 days (calendar days, not 4 months!) of the last furnishing of labor, materials or services. Service upon the prime contractor is optional, unless your customer. If you are a first, second or third tier subcontractor you must also serve a Notice of Claim of Lien Upon Funds by First, Second or Third Tier Subcontractor on the owner and general contractor in addition to the lien claim.

If you are a subcontractor you must also serve a Notice of Claim of Lien Upon Funds by Subcontractor/Supplier on the owner and general contractor.  You can now file a lien claim on the property, and the owners and generals have legal liability to honor your Claim Upon Funds if there are any remaining funds due.

In addition, the rights of subcontractors can be very limited. See North Carolina Preliminary Notice, Private Works, for more information. Lien can also be ‘bonded around’ by a general contractor.

Perfection: File suit within 180 days of the last furnishing of labor, materials or services, or within 30 days of the notice of completion.

Lien Bond: Owner can either deposit 100% of amount due into court or posting a bond for 125% of the amount of the lien.

Payment Bond: Where a Payment Bond has been provided by a surety, file within the time frame as stated in the bond.

The usual remedy is to file to enforce all claims in one suit (see below, Procedures). In any case, we strongly recommend that your attorney handle the enforcement actions to perfect your lien claims.

Information Requirements: Program information and information for Exhibits A-E, any additional costs as to legal fees, court costs and interest charges (do not pass these up. Estimate if necessary. In the case of Bond Claims, the sureties will reserve only the amount for which you make claim), and the county of the state where the recording will be made.

Form Types: Correct version of Notice of Claim of Lien, Exhibit's A-D, if needed, Claim of Lien, Recorder's Letter, and the Declaration of Personal Service.

Procedures: Prepare your documents using the required information. File your Notice of Claim of Lien and serve with Claim upon the owners and general contractor by certified mail or personal service. In addition, the owner must be served personally with a copy of Claim of Lien- use an employee off the clock (and pay them for the service), a local sheriff or a local process server. Have them fill out the Exhibit E document when done.  At this point you are ready enforce all of your claims in one action.

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