AN ACT TO MAKE VARIOUS AMENDMENTS TO NORTH CAROLINA'S MECHANICS LIEN AND PAYMENT BOND LAWS, AS RECOMMENDED BY THE LEGISLATIVE RESEARCH COMMISSION'S MECHANICS LIENS ON REAL PROPERTY COMMITTEE. Summarized in Daily Bulletin 5/22/12, 6/13/12, 6/20/12, 6/26/12, and 6/27/12. Enacted July 12, 2012. Sections 1–3 and 5–11 are effective January 1, 2013. The remainder is effective July 12, 2012.
Summary date: Jul 17 2012 - More information
Summary date: Jun 27 2012 - More information
Senate amendment makes the following changes to 4th edition. Deletes proposed language amending GS 44A-24, which made a violation of that statute also constitute an unfair and deceptive trade practice in violation of GS 75-1.1 and subjected violators to civil liability.
Summary date: Jun 26 2012 - More information
Senate committee substitute makes the following changes to 3rd edition.
Deletes proposed amendments to GS 44A-12 that would have added requirements pertaining to lien waiver forms. Amends GS 44A-20(d) to clarify that a lien waiver signed by the contractor before the commencement of an action to enforce a perfected claim of lien on real property under GS 44A-23 waives the subcontractor’s right to enforce the contractor’s claim of lien on real property but does not affect the subcontractor’s right to a claim of liens on funds or the subcontractor’s right to a claim of lien on real property allowed under the subsection (previously, provided that a lien waiver signed by the contractor before the claim of lien on real property is filed waived the subcontractor’s right to a claim of lien on real property but did not affect the subcontractor’s rights to a claim of liens on funds).
Makes technical and conforming changes. Makes a conforming change to the title.
Summary date: Jun 20 2012 - More information
House committee substitute makes the following changes to 2nd edition.
Deletes amendment to GS 105-362(b)(2), which concerned a part of real property, listed as one parcel and then divided into a separate parcel, being released from the tax lien.
Summary date: Jun 13 2012 - More information
House committee substitute makes the following changes to 1st edition.
Deletes changes made to the definition of improve in GS 44A-7. Amends GS 44A-12(f) (concerning lien waivers) to add that the provisions do not apply to lien waivers or subordinations obtained by specified parties as a part of any real estate or financing transactions. Amends GS 44A-13 (concerning actions to enforce claims) to add provisions related to subsequent purchasers of improved property and lenders as parties after a claim of lien is discharged. Amends proposed subsection (e) to GS 44A-27 to state that there is no obligation to provide a notice of public subcontract for claims of $20,000 (was, $10,000) or less. Makes conforming changes. Amends GS 44A-27(b) to specify that a claim does not include labor or materials provided more than 75 days (was, 60 days) before the claimant’s service of the notification of public subcontract to the contractor, unless the contractor failed to timely provide a copy of the payment bond. Makes clarifying changes. Makes a technical change to the bill title.
Summary date: May 22 2012 - More information
Makes modifications to the statutes governing liens on real property as follows. Adds several defined terms and clarifies definitions in GS 44A-7. Makes a conforming change to repeal GS 44A-17. Amends GS 44A-11 to expand the steps required to perfect a claim of lien on real property, including service of the claim of lien upon the record owner of the real property and also upon the contractor if applicable. Amends GS 44A-12 to clarify the form required for claims of lien on real property and to add forms for partial lien waivers and final lien waivers. These changes apply to improvements to real property commenced on or after January 1, 2013, and to improvements with the required first permit obtained on or after January 1, 2013.
Effective when the act becomes law, adds subsection (d) to GS 44A-13 to provide that a former owner of improved property, as described, is not a necessary party in an action to enforce a claim of lien.
Amends GS 44A-18 (concerning perfection of lien upon funds) to clarify that second tier and third tier subcontractors may perfect their claims by service of the notice of claim of lien upon funds to the extent of the claim. Clarifies that a lien on funds granted under this statute arises, attaches, and is effective immediately when the subcontractor first furnishes labor, material, or rental equipment at the improvement site and is perfected when written notice is given to the obligor. Enacts new subsection (g), permitting any owner or contractor against whose interest the lien is claimed to make, receive, or use payments until a claimant provides the required written notice. Amends GS 44A-20(d) to add that a lien waiver signed by the contractor before the claim of lien on real property is filed waives the subcontractor’s right to a claim of lien on real property but does not affect the subcontractor’s rights to a claim of liens on funds. Makes modifications to the items included by first tier subcontractors on a claim of lien form in GS 44A-23. Amends GS 44A-24 (concerning false statements) to also make any person making a false written statement about the amount due subject to a claim for unfair and deceptive practice. Makes any person who signs or directs another person to sign the written statement guilty of a Class 1 misdemeanor and subject to a claim for unfair and deceptive practice. Also makes any offense by a licensed contractor or qualifying party that causes harm subject to specified disciplinary action. Amends GS 44A-27 (concerning payment bonds) to require a contractor to furnish a payment bond within seven days of a claimant’s written request. Limits the claim as detailed, unless the contractor does not timely provide the payment bond. Sets out a sample notice of public subcontract form and modifies the notice requirements. Requires notice of public subcontract only for portions of claims exceeding $10,000. Sets out required components for a contractor’s project statement, which must be provided for contracts with bonds. Makes additional clarifying and conforming changes to several provisions governing statutory liens on real property. These changes apply to improvements to real property commenced on or after January 1, 2013, and to improvements with the required first permit obtained on or after January 1, 2013.
Modifies provisions in GS Chapter 44A to remove registered mail as an option for providing notice.
Amends GS 105-362(b)(2) (concerning discharge of lien on real property) to clarify that a part of real property, listed as one parcel and then divided into a separate parcel, must (was, may) be released from the tax lien, after the part’s assessed value has been certified by the county assessor (was, tax supervisor) and payment of all past-due taxes on both parcels and all penalties and interest have been paid. Applies to taxes imposed in tax years beginning on or after July 1, 2012.
© 2021 School of Government The University of North Carolina at Chapel Hill
This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.