What steps are necessary to protect and assert lien rights in North Carolina?
In order to perfect traditional lien rights in North Carolina, a Claim of Lien against the real property must be filed in the county in which the property is located and must be served upon all parties in the construction chain. Chapter 44A mandates what information must be contained in the Claim of Lien and is strictly enforced. If the Claim of Lien is not in compliance with the statute the Clerk of Court may reject the lien or the Court may later refuse to enforce it. Thus, it is suggested that a contractor or subcontractor contact an attorney in order to ensure compliance with the statute. Chapter 44A further requires that a lawsuit be filed within a specified time period in order to enforce the lien, or the lien will be discharged. In order to perfect a lien on funds, a subcontractor must serve a Notice of Claim of Lien on Funds on all parties to be bound by the lien. The Notice of Claim of Lien on Funds need not be filed with the Court. The lien takes effect upon receipt by the ob
