NORTH CAROLINA—H1052—New Law Is In Effect

Reminder – This statute is now in effect. Our original post from 7/30/12 is listed below:

Under H1052, the necessary parties to be named when filing suit to enforce a claim of lien have been defined. This section of the act takes effect immediately. The majority of the changes made by H1052 take effect for those projects where the first required permit is obtained on or after January 1, 2013, or, if no permit is required, improvements commence on or after January 1, 2013.

Key changes under the mechanic's lien law include:
* The lien must be filed and served upon the owner of the real property, and, if contracting with the prime contractor, the prime contractor. Methods of service, including certified mail, are provided, along with approved addresses to be served.
* The statute requires those contracting with the prime contractor to list the contractor within the lien, and to serve the contractor and the owner with a copy of the lien.
• The statute clarifies that a lien upon funds arises, attaches and is effective immediately upon first furnishing labor or materials.
* A lien waiver signed by the contractor prior to an action to enforce a perfected claim on lien on real property, waives the subcontractor's right to enforce the contractor's claim of lien on real property, but does not affect the subcontractor's right to a claim of lien on funds or the subcontractor's right to a claim of lien on real property.
*A first tier subcontractor may use the date upon which either they or the contractor first or last furnished labor or materials on the real property, possibly extending their deadline to file a lien.

Key changes under the public payment bond statute:
*A public notice of subcontract has been added as a requirement for those who do not have a contractual relationship with the contractor on a claim exceeding $20,000.00. The bond claim, when later served, will only cover materials furnished within the 75 days prior to the service of the public notice of subcontract. Click here for legislation.

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