Rebuilding Western North Carolina:

North Carolina Pre-Notice Requirements

As part of our continuing series on legal implications of the rebuilding efforts in Western North Carolina we wanted to provide a refresher on the pre-notice requirements for construction projects. As discussed in our previous posts, “pre-notice” comes in the form of a Notice to Lien Agent filed through www.liensnc.com. A Notice to Lien Agent may be posted prior to or concurrently with beginning work, but in any case, should always be posted within 15 days of the first date of furnishing labor or materials to secure absolute protection. In the event that that deadline is missed, the Notice to Lien Agent should still be posted to LiensNC ASAP in order to provide the maximum protection.

A Notice to Lien Agent serves dual purposes. First, as a practical matter, it provides notice to the project owner of all parties who might assert lien rights on the project. While it does not guarantee payment, it does improve the odds that you will be contacted prior to a closing on the property in order to resolve any outstanding balances. Second, the Notice to Lien Agent protects a contractor, subcontractor, or supplier’s ability to later file a Lien on Real Property in the event that the property is sold, refinanced, or otherwise transferred prior to the filing deadline for the Lien on Real Property.

Be aware, simply filing the Notice to Lien Agent is not sufficient to fully protect your lien rights with respect to real property, it is a pre-notice only. To properly assert lien rights a Lien on Real Property must be filed within 120 days of the last furnishing of labor or materials, and must be enforced in a lawsuit within 180 days of last furnishing unless payment is received in the interim.

Keep an eye out in the coming weeks as we continue to discuss insights into the legal aspects of projects in Western North Carolina, such as a discussion of the Notice of Contract and Notice of Subcontract requirements for particular kinds of projects.