Proposed Changes to NC Lien Agent Statutes

On April 4, 2017, Senate Bill 602 was filed, proposing massive changes to the lien agent statutes of North Carolina.  The purported purpose of the revisions was to provide for the cancellation of a Notice to Lien Agent by the potential lien claimant.  Interestingly, the proposed changes seem to indicate that any such cancellation by a potential lien claimant would be permissive, as opposed to mandatory.    Additionally, the changes would modify the relation-back of a subsequently filed Notice to Lien Agent and would create a situation where a Notice to Lien Agent would be automatically cancelled after 5 years.  As currently drafted, it would seem that best-practice would simply be not participate in the permissive cancellation of a Notice to Lien Agent.  Stay tuned; we will continue to monitor this legislation and provide subsequent updates.