H.B. 180 To Provide Technical Corrections to the NC Lien Law

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Guest Editorial by Brian Schoolman, Safran Law OfficesThe NC General Assembly has filed House Bill 180, titled “An Act to Make Various Technical Corrections to the Laws Governing Mechanics Liens.”  The bill is available here.

Among the revisions are an addition to the methods of providing notification, via “an Internet Web site.”  This will make the use of the website being developed by the title insurers a statutorily accepted method of compliance. (See NCGS 44A-11.2(f)(7) in the bill.)

The initial draft of the bill does not include the Carolinas AGC proposal to simplify the subcontractor’s protection of subrogated liens on real property.  As a result, subcontractors and suppliers will still need to deliver a notice to the lien agent, and serve its notice of claim of lien upon funds upon the owner and the lien agent, in order to prevent having the subrogated lien right waived by the action of the general contractor.  However, the bill would expand the ability of subs and suppliers to rely upon the first and last dates of performance of the general contractor.  Under HB 1052, only first-tier subcontractors or suppliers could rely upon those GC dates.  As drafted, HB 180 would allow any eligible sub or supplier (1st, 2nd, or 3rd tier) to do so.  (See NCGS 44A-23(d).)

I am also pleased to note that my suggested amendment — that a copy of a notice of claim of lien upon funds may be filed in lieu of the original, along with a bond to discharge said lien — has also been included in HB180.  (See NCGS 44A-19(e)(2) in the bill.) Read More.