Bill Summary for H 707 (2017-2018)

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Summary date: 

May 31 2017

Bill Information:

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.

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Bill summary

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.