Liens are legal notices attached to a property signifying the owner owes a debt. Before the property can be sold with a clear title, the lien must be paid off. Mechanic’s liens are filed when professionals in the construction industry perform work on a property or provide materials without receiving payment. Filing a lien is an effective way to resolve payment disputes when other methods have failed. Consulting a contract lawyer is the best way to ensure a claim is submitted correctly.

Here are the steps to filing a mechanic’s lien:

• Lien Agent Notice: This is required for all contracts worth $30,000 or more unless the work is on existing owner-occupied residential structures. The property owner is responsible for designating a lien agent, and their contact information should be posted with a building permit or on site. 

• Draft & File a Claim: If a contractor decides to proceed with a mechanic’s lien, they must draft a statement detailing all the pertinent information about the job. This includes the names of all parties involved, the location of the property, amount owed, and when the work was completed. It must be filed with the clerk of court within 120 days from the last day work was performed.
• File a Lawsuit to Enforce the Claim: Within 180 days of the date materials were last furnished or work was last performed, a civil lawsuit must be filed with the clerk of court and served to the defendants in accordance with North Carolina Law. 
• Claim of Lien on Funds: A claim of lien upon funds may be served at any time by any tier contractor and must substantially follow the statutory format set forth in North Carolina General Statute § 44A-19. It allows a subcontractor to have a lien on any unpaid funds owed to the tier of contractor immediately above them. 
• Follow the Timeline: There is a specific timeline that must be followed to start a lawsuit once the statement is filed and served to the property owner. A contract lawyer will offer valuable assistance in making sure all documents are correctly worded and submitted on time to avoid a claim denial. 

For a mechanic’s lien to be considered valid, it must comply with state regulations and be filed accurately. These claims are complicated, making the counsel of a contract lawyer necessary. In cases such as this, the residents of Greensboro, NC look to The Law Office of W. Randall Holcomb for legal assistance. They offer expert counsel and understand the laws surrounding property and mechanic’s liens. Contact them at (336) 888-8760, or visit them online to learn more.