LIEN AGENT/NOTICE OF CANCELLATION.

View NCGA Bill Details2017-2018 Session
House Bill 707 (Public) Filed Monday, April 10, 2017
AN ACT TO MAKE VARIOUS CHANGES TO THE STATUTES GOVERNING LIEN AGENTS FOR THE PURPOSE OF PROVIDING FOR THE CANCELLATION AND RENEWAL OF A NOTICE TO LIEN AGENT.
Intro. by Jordan, Stevens, B. Turner.

Status: Ch. SL 2017-168 (House Action) (Jul 21 2017)

SOG comments (1):

Change long title

House committee substitute to 1st edition changed long title.  Long title was AN ACT TO MAKE VARIOUS CHANGES TO THE STATUTES GOVERNING LIEN AGENTS FOR THE PURPOSE OF PROVIDING FOR THE CANCELLATION OF A NOTICE TO LIEN AGENT.

Bill History:

H 707/S.L. 2017-168

Bill Summaries:

  • Summary date: Jul 25 2017 - More information

    AN ACT TO MAKE VARIOUS CHANGES TO THE STATUTES GOVERNING LIEN AGENTS FOR THE PURPOSE OF PROVIDING FOR THE CANCELLATION AND RENEWAL OF A NOTICE TO LIEN AGENT. Enacted July 21, 2017. Effective October 1, 2018.


  • Summary date: May 31 2017 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Amends GS 44A-11.1 (Lien agent; designation and duties). Further requires closing attorneys to request copies of renewals of notices to lien agents received by the lien agent relating to the real property to be deemed to have fulfilled their professional obligation as a closing attorney in that matter.

    Amends GS 44A-11.2 (Identification of lien agent; notice to lien agent; effect of notice). Replaces currently proposed subsection (q) and (r), regarding the cancellation of Notices to Lien Agents and with subsection (q) as follows: for any improvement to real property subject to GS 44A-11.1, a potential lien claimant may cancel a Notice to Lien Agent by utilizing the Internet web site approved for such use by the designated lien agent. For any improvement to real property subject to GS 44A-11.1 comprising one- or two-family dwellings, a potential lien claimant shall cancel a Notice to Lien Agent by utilizing the Internet Web site approved for such use by the designated lien agent within a reasonable time after the potential lien claimant has confirmed its receipt of final payment for the improvement to which the Notice to Lien Agent relates. Provides that Notices to Lien Agents timely renewed prior to cancellation or expiration maintain and relate back to the original delivery date (was, filing date) of the Notice to Lien Agent. Replaces proposed subsection (v), regarding Notices to Lien Agents filed after a prior Notice to Lien Agent is cancelled or expires, with new subsections (u) and (v) (reflecting organizational changes) as follows: provides that protections to potential lien claimants as the result of delivery of a Notice to Lien Agent terminate upon the cancellation or automatic expiration of that Notice to Lien Agent, and are not revived or renewed by subsequent delivery of a Notice to Lien Agent by that potential lien claimant. Cancellation or expiration of a Notice to Lien Agent under this statute has no affect upon the validity of a previously filed claim of lien or upon the priority of lien rights.

    Makes conforming organizational changes.


  • Summary date: Apr 26 2017 - More information

    House committee substitute makes the following changes to the 1st edition.

    Changes the act's long title.

    Modifies and adds to the proposed additions to GS 44A-11.2 and now provides as follows.

    Establishes that when a potential lien claimant has filed a Notice to Lien Agent for any improvement to real property comprising of one- or two- family dwellings subject to GS 44A-11.1, and has received final payment satisfactory to resolve the Notice to Lien Agent previously filed, the potential lien claimant is required to cancel the Notice to Lien Agent within a reasonable time ( previously, 15 days) of receipt of final payment by using the website approved by the designated lien agent. Additionally permits a potential lien claimant to cancel a Notice to Lien Agent by using the website approved by the designated lien agent for any reason at any time (previously, did not specify by approved website). Deletes provisions detailing information that must be included in the cancellation. Provides that a Notice to Lien Agent cancelled pursuant to this provision has the effect of cancelling and discharging the Notice to Lien Agent and the corresponding protections provided under the statute. Adds that cancelling a Notice to Lien Agent pursuant to this provision does not cancel a claim of lien on real property filed or affecting priority of lien rights pursuant to the statute. 

    Establishes that a Notice to Lien Agent that is not otherwise cancelled or renewed pursuant to the statute expires and is discharged five years from the date of filing. Provides that a Notice to Lien Agent can be renewed prior to its cancellation or automatic expiration for one five-year period by using the website approved by the designated lien agent. Renewal extends the date of expiration by five years, with the renewal maintaining and relating back to the original filing date of the Notice to Lien Agent (previously, not provided for). Clarifies that if the Notice to Lien Agent is cancelled or automatically expires and a later Notice to Lien Agent is filed by the potential lien claimant for improvements to the same real property, the later notice only has the protections provided from the date of the filing of the later notice and the later notice does not relate back to or renew the cancelled filing. 

    Makes organizational changes.

    Makes technical changes to proposed subdivision (9) in GS 58-26-45(b).

    Changes the effective date of the act to October 1, 2018 (was, January 1, 2018).


  • Summary date: Apr 10 2017 - More information

    Identical to S 602, filed 4/4/17.

    Amends GS 44A-11.1 (Lien agent; designation and duties). Provides that attorneys who contact a lien agent in writing and request copies of the notices to lien agent and cancellations of notice to lien agent received by the lien agent by the specified time frame have fulfilled the attorney's professional obligation as a closing attorney to check such notices and cancellations.

    Amends GS 44A-11.2 (Identification of lien agent; notice to lien agent; effect of notice). Authorizes a potential lien claimant who has been paid an amount satisfactory to resolve the notice to lien agent previously filed to file a Cancellation of Notice to Lien Agent with the designated lien agent within 15 days of receipt of payment utilizing an Internet Web site, as specified. Authorizes a potential lien claimant to file a Cancellation of Notice to Lien Agent with the designated lien agent for any reason at any time. Lists required information for a Cancellation of Notice to Lien Agent. Provides that a Cancellation of Notice to Lien Agent received by the lien agent from a potential lien claimant cancels and discharges the Notice to Lien Agent and corresponding protections as to the subject matter of the Notice. Provides that later Notices do not relate back to the original Notice. Provides that Notices to Lien Agents are discharged five years from the date of filing if not cancelled or renewed pursuant to this statute.

    Amends GS 58-26-45 to raise the fee for services rendered pursuant to each designation as a lien agent for improvements to one- or two- family dwellings from $25 to $30, and for services rendered pursuant to each designation as a lien agent for all other improvements to real property from $50 to $58. Makes conforming changes.

    Effective January 1, 2018.


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