A BILL TO BE ENTITLED AN ACT TO MAKE VARIOUS TECHNICAL CORRECTIONS TO THE LAWS GOVERNING MECHANICS LIENS. Enacted March 28, 2013. Effective April 1, 2013.
Bill Summaries: H 180 MECHANICS LIENS/TECHNICAL CORRECTIONS.
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Summary date: Mar 28 2013 - View Summary
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Bill H 180 (2013-2014)Summary date: Mar 12 2013 - View Summary
Senate committee substitute makes the following changes to the 2nd edition.
Makes technical changes.
Amends GS 44A-20(d), adding that a lien waiver signed by the contractor prior to a subcontractor's perfecting its lien claim on real property in accordance with GS 44A-11 waives the contractor's right to enforce the contractor's lien claim on real property (previously, a lien waiver signed by the contractor prior to the occurrence of all of the actions specified in GS 44A-23(a1) and GS 44A-23(b)(5), waives the subcontractor's right).
Amends GS 44A-23(a1), providing that no action of the contractor will be effective to prejudice the rights of a first tier subcontractor without that subcontractor's written consent once the first tier subcontractor has perfected its lien claim on real property in accordance with GS 44A-11 (previously, no action of the contractor will be effective to prejudice the rights of a subcontractor without his or her written consent upon three specified occurrences).
Amends GS 44A-23(a1), deleting GS 44A-23(a1)(1-3).
Amends GS 44A-23(b)(5), providing that no action of the contractor will be effective to prejudice the rights of the second or third tier subcontractor without that subcontractor's written consent once the second or third tier subcontractor has perfected his or her lien claim on real property in accordance with GS 44A-11 (previously, no action of the contractor will be effective to prejudice the rights of the second or third tier subcontractor without his or her written consent, upon the occurrence of three specified occurrences).
Amends GS 58-26-45(b)(2), providing that upon the receipt of the notice of designation by the owner pursuant to GS 44A-11.1, a lien agent will have the duty to receive notices to a lien agent delivered by potential lien claimants pursuant to GS 44A-11.2 (previously, to receive notices to a lien agent delivered by potential lien claimants pursuant to GS 44A-11.2 and copies of notices of claim of lien upon funds delivered by potential lien claimants pursuant to GS 44A-23(a1)(3) or GS 44A-23(b)(5)(c).
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Bill H 180 (2013-2014)Summary date: Mar 6 2013 - View Summary
House committee substitute makes the following changes to the 1st edition.
Amends GS 44A-11.1, stating that the article is applicable to any improvement to real property for which the costs of the undertaking are $30,000 or more at the time of the original building permit or in cases in which no building permit is required at the the time the contract for the improvements is entered into by the owner.
Amends GS 44A-11.2, changing GS 44A-11.2(b1) to GS 44A-11.2(c), and changing language to state that potential lien claimants making requests who did not receive the lien agent contact information, and who has not furnished labor, labor, materials, rental equipment, or professional design or surveying services at the site of the improvements, or who last furnished labor, materials, rental equipment, or professional design or surveying services at the site of the improvements prior to the posting of the contact information for the lien agent, have no obligation to give notice to the lien agent until the claimant has received the contact information from the owner.
Adds that an internet web site approved by the designated lien agent to transmit information is an acceptable form of written notice to the designated lien agent.
Provides in GS 44A-11.2(n)(i) that a potential lien claimant may perfect a claim of lien if a Notice to Lien Agent is received by the specified lien agent no later than 15 days after first furnishing labor or materials.
Deletes that, for specified claimants, they may perfect a lien if they submit a Notice to Lien Agent within 15 days of receiving the lien agent's contact information or within 15 days of being designated as the lien agent.
Makes technical, conforming, and clarifying changes throughout GS 44A-11.2.
Amends GS 44A-23, making technical and conforming changes.
Amends GS 58-26-45, making technical and conforming changes.
Amends Section 8 of the act, the implementation clause, to provide that Sections 1, 2, 4, 5, and 7 of the act apply to improvements to real property affected for which the first furnishing of labor or materials at the site of the improvements is on or after April 1, 2013. Section 3 applies to notices of claims of lien filed on or after April 1, 2013. Section 6 applies to improvements to real property for which the first building permit is obtained on or after April 1, 2013.
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Bill H 180 (2013-2014)Summary date: Feb 27 2013 - View Summary
Amends GS 44A-11.1 (Lien agent; designation and duties) clarifying information required for notice of designation of lien agent. States that lien agent is not agent of owner for receiving Claim of Lien on Real Property. Provides for designation of successor lien agent in event of death, resignation or loss of license by the lien agent. Specifies that closing attorneys must make written request to lien agents for attorney to meet professional obligations.
Amends GS 44A-11.2 (Identification of lien agent; notice to lien agent; effect of notice) stating that a potential lien claimant may include one that has furnished labor, materials, rental equipment, or professional design services. Adds notice by internet web site as acceptable form of written notice to lien agent. Clarifies that lien agent shall include name and address of applicable contractor and design professional in response to persons requesting information about persons who have given notice to lien agent. Adds that Notice to Lien Agent does not satisfy service or filing requirements for a Claim of Lien on Real Property. Clarifies that the conditions for perfecting a claim of lien on real property apply to improvements to real property subject to the lien agent designation requirements. Provides that a potential lien claimant may perfect a claim of lien if a specified Notice to Lien Agent is received by lien agent within 15 days of the claimant first furnishing labor or materials or, for specified claimants, within 15 days of receiving lien agent's contact information. Adds that, in the case of a mortgage or deed of trust recorded prior to perfecting a lien, the lien is subordinate unless the mortgage or deed of trust was for the benefit of an affiliate or relative, or unless a Notice to Lien Agent was received under certain specified circumstances.
Amends GS 44A-19 (Notice of claim of lien upon funds) permitting a copy of notice of claim of lien upon funds to be filed with the clerk of superior court in certain circumstances.
Amends GS 44A-20 (Duties and liability of obligor) referencing related sections for claimant actions for perfecting a claim of lien and waiving claimant rights.
Amends GS 44A-23 (Contractor's claim of lien on real property) clarifying the date to be used when a subcontractor completes a claim of lien.
Amends GS 44A-27 (Actions on payment bonds; service of notice) clarifying a contractor's obligation to provide a copy of a payment bond to a claimant making a request.
Amends GS 58-26-45 (Registration as a lien agent) concerning obligations of a lien agent to provide written notice to design professionals identified by the owner. Sets fees for lien agent services at $25 for one- and two-family dwellings and $50 for all other improvements to real property.
Effective April 1, 2013.