Will NC’s Lien Law Delay Construction Projects?


North Carolina’s new construction lien law went into effect on April 1, and it changes many of the rules required before a construction project can start, reports the Triangle Business Journal, reports the Triangle Business Journal.

The new lien agent system, signed into law in July 2012, now requires appointment of a lien agent from a title company that is registered on a state list of mechanic’s lien agents before a building permit can be approved.

According to the North Carolina Home Builders Association, the law was designed to prevent “hidden liens” — or claims by a subcontractor or supplier on a project — that may be filed after a property is sold or after a new mortgage has been placed on the property.

“I have heard some complaints from architects,” says Dave Simpson, director of government relations for the Carolinas Associated General Contractors in Raleigh. “There are some kinks in the system that hopefully will be worked out so that construction projects will not be delayed.”

The law does exempt construction projects that are under $30,000, or improvements made to the owner’s existing residence, or for public building projects.

More details on the law can be found at the LiensNC website, a collaborative effort of NIC Services and LiensNC to provide a web-based online system used for filing of notices to the mechanics lien agents.  Read More.