North Carolina Mechanic Lien Filing Deadlines

Claim of Mechanic Lien on Real Property — 120-Day Filing Deadline

Under North Carolina law, 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 to the project. The mechanic lien is recorded in the county where the property is located.

The 120-day deadline runs from the date of last furnishing, not from project completion. Both contractors and subcontractors are subject to the same 120-day filing period.

Subcontractor Derived Mechanic Lien Rights

Subcontractors' mechanic lien rights in North Carolina are derived completely from the prime contractor's rights. This means the subcontractor's mechanic lien cannot exceed the amount the owner owes the contractor at the time the mechanic lien is filed.

The Notice of Claim of Mechanic Lien should be provided as soon as possible after the obligation is due to preserve the right to a full price mechanic lien. Delay in filing allows the owner to make further payments to the contractor, reducing the funds available to support the subcontractor's mechanic lien.

Mechanic Lien on Contract Funds (§44A-19)

In addition to the mechanic lien on real property, North Carolina provides a mechanic lien on contract funds under §44A-19. Subcontractors and material suppliers may claim a mechanic lien on funds owed by the owner or higher-tier parties to the claimant's customer.

First-tier subcontractors are entitled to a mechanic lien on funds owed to the contractor. Second-tier subcontractors are entitled to a mechanic lien on funds owed to the first-tier subcontractor. No formal recording is required for this remedy — a Notice of Claim of Mechanic Lien is served on the obligor.

Timing of Notice — Business Judgment

Because subcontractor mechanic lien rights are derived from the contractor's rights, notice of the mechanic lien claim should be given as soon as possible to maximize the available funds. However, filing a Notice of Claim encumbers the project and may affect business relationships, so business judgment should be exercised in deciding when to file.