North Carolina Mechanic Lien Law: Complete Guide
Your Complete Guide to Mechanic Lien Rights Under NC Real Property §44A-7 Through 24 — Private Works, Mechanic Lien on Funds, Payment Bonds & Public Projects
North Carolina mechanic lien deadline table with toggles for project type and claimant type.
North Carolina Preliminary Notice & Mechanic Lien Deadlines
Select your project type and role to see the deadlines that apply to you.
Prime Contractor — In privity with the property owner
Serve a Notice to Lien Agent within 15 days of first furnishing on projects where the owner has designated a lien agent under N.C.G.S. §44A-11.2.
A Claim of Lien on Funds is not required for a contractor in direct contract with the owner.
Record the Claim of Lien on Real Property with the county clerk of superior court within 120 days after last furnishing labor or materials. N.C.G.S. §44A-12(b).
Commence an action to enforce the lien within 180 days after last furnishing labor or materials. N.C.G.S. §44A-13.
Preliminary Notice
Serve a Notice to Lien Agent within 15 days of first furnishing on projects where the owner has designated a lien agent under N.C.G.S. §44A-11.2.
A Claim of Lien on Funds is not required for a contractor in direct contract with the owner.
Mechanic Lien
Record the Claim of Lien on Real Property with the county clerk of superior court within 120 days after last furnishing labor or materials. N.C.G.S. §44A-12(b).
Enforcement
Commence an action to enforce the lien within 180 days after last furnishing labor or materials. N.C.G.S. §44A-13.
North Carolina Mechanic Lien Law Overview
North Carolina construction mechanic lien rights are governed by Real Property §44A-7 through 24. This statutory framework provides Mechanic's Lien rights to contractors, subcontractors, material suppliers, architects, and surveyors who furnish labor or materials for the improvement of real property in the State of North Carolina.
North Carolina has a multi-layered notice system. Contractors must file a Notice of Contract within 30 days of the issuance of building permits. All subcontractors, material suppliers, architects, and surveyors must send Notice to the Mechanic Lien Agent within 15 days of first furnishing labor or materials. Subcontractors not in privity with the general contractor may also serve a Notice of Subcontract.
All claimants must record a Claim of Mechanic Lien on Real Property after the obligation is due but within 120 days of last furnishing labor or materials. North Carolina also provides a unique mechanic lien on contract funds under §44A-19, allowing subcontractors to claim a mechanic lien on funds owed to higher-tier parties.
Public works projects over $300,000 require 100% payment bonds under §44A-25 through 35. National Lien & Bond provides authoritative guidance on every aspect of North Carolina construction mechanic lien compliance.
North Carolina Notice Requirements
Notice obligations that must be satisfied before filing a mechanic lien in North Carolina.
North Carolina uses a two-track system for mechanic's liens: (1) a Claim of Lien on Real Property — an encumbrance on the property filed with the county Register of Deeds — and (2) a Claim of Lien on Funds — a claim against contract funds held by the owner or contractor. Subcontractors and suppliers not in direct contract with the property owner must serve a Notice of Claim of Lien on Funds on all upstream parties to preserve their right to share in contract funds.
The Notice of Claim of Lien on Funds must be served within 120 days of last furnishing labor or materials. Service must be by personal delivery or registered or certified mail return receipt requested. The notice must identify the claimant, the amount claimed, the project, and the parties. Under N.C.G.S. §44A-19, after service of this notice, the owner is required to withhold funds up to the amount of the claim from further disbursement to the GC.
For North Carolina public projects, any party not in direct contract with the prime contractor must give written notice to the prime contractor and the contracting public body within 120 days of last furnishing. This notice preserves payment bond rights under N.C.G.S. §44A-27. Bond claims against the state must be brought within 1 year of final contract settlement.
How to File a Mechanic Lien in North Carolina: Step-by-Step
An overview of the statutory process — each step is technical and typically handled by an attorney.
- 1
Determine your claim type: If you are a subcontractor or supplier, you may file both a Claim of Lien on Real Property (against the property itself) and a Notice of Claim of Lien on Funds (against contract funds). Both must be filed within 120 days of last furnishing.
- 2
Serve Notice of Claim of Lien on Funds (subcontractors): Serve a Notice of Claim of Lien on Funds on the property owner, the general contractor, and all intervening subcontractors above you in the contract chain within 120 days of last furnishing (N.C.G.S. §44A-19). This notice triggers a funds-withholding obligation.
- 3
Prepare the Claim of Lien on Real Property: Draft a Claim of Lien (N.C.G.S. §44A-12) including: (a) the claimant's name and address; (b) the owner's name and address; (c) the name of the party who hired the claimant; (d) a description of the work or materials; (e) the amount claimed; and (f) a description of the real property.
- 4
File with the county Register of Deeds: File the Claim of Lien on Real Property with the Register of Deeds in the county where the property is located within 120 days of your last furnishing.
- 5
Serve a copy on the owner: Serve a copy of the filed Claim of Lien on the property owner by certified mail or personal service.
- 6
File suit within 180 days of last furnishing: Commence an action to enforce the lien in the Superior Court of the county where the property is located within 180 days of your last day of furnishing labor or materials (N.C.G.S. §44A-13). Missing this deadline extinguishes the lien.
Topics on This Page
North Carolina Mechanic Lien Law: Key Topics
Navigate the critical compliance areas for North Carolina construction mechanic lien law.
Notice Requirements
Notice of Contract within 30 days, Notice to Mechanic Lien Agent within 15 days, Notice of Subcontract, and public works bond claim notice within 75 days
Mechanic Lien Deadlines
120-day Claim of Mechanic Lien on Real Property, mechanic lien on contract funds under §44A-19, and subcontractor derived mechanic lien rights
Mechanic Lien Enforcement Deadlines
180-day suit deadline, public works bond claims between 90 days and 1 year, and Notice of Claim on Bond within 120 days
Frequently Asked Questions
What statute governs mechanic liens in North Carolina?
Mechanic's liens are governed by NC Real Property §44A-7 through 24. Mechanic Lien on contract funds is under §44A-19. Public works payment bonds are governed by §44A-25 through 35, requiring 100% bonds on contracts over $300,000.
Is a preliminary notice required to file a mechanic lien in North Carolina?
Yes. Contractors must file a Notice of Contract within 30 days of building permits. All claimants must send Notice to the Mechanic Lien Agent within 15 days of first furnishing. Subcontractors not in privity with the GC should serve a Notice of Subcontract.
What is the deadline to file a mechanic lien in North Carolina?
All claimants must record a Claim of Mechanic Lien on Real Property within 120 days of last furnishing labor or materials. The mechanic lien must be recorded after the obligation is due.
How does North Carolina mechanic lien law differ from other states?
North Carolina has several unique features: subcontractor mechanic lien rights are derived entirely from the GC's rights, a designated Mechanic Lien Agent receives all notices, a separate mechanic lien on contract funds remedy under §44A-19, the Notice of Subcontract provides subrogation rights, and business judgment affects timing of notice.
What are the notice requirements for North Carolina public works bond claims?
First-tier subs need no notice. Others must send Notice of Subcontract within 75 days of first furnishing and Notice of Claim on Payment Bond within 120 days of last furnishing by registered/certified mail. Suit between 90 days and 1 year of last furnishing.
What is the deadline to file suit to enforce a North Carolina mechanic lien?
Suit must be filed within 180 days of last furnishing. For public works bond claims, suit must be filed after 90 days and before 1 year from last furnishing or the contractor's final settlement, whichever is longer.