"Lien In": North Carolina General Assembly Revisits New Mechanics Lien Laws
Thursday, May 22, 2014

Last April, we wrote about the significant changes to the North Carolina mechanics lien laws, which are continuing to create issues and opportunities for owners, contractors, subcontractors and title companies working in the State.  As with any significant legislative revision -- to shamelessly a metaphor especially pertinent in the construction space -- the dust has settled to a degree and some "touching up" must now take place.  The North Carolina General Assembly is back in session, in Raleigh, tackling a number of issues. 

Are the mechanics lien laws one such issue?  Yes.

Ok, but what's going on in that space?  Well, our fine Raleigh colleague, Laura DeVivo, updated the world on her must-read, up-to-the-minute blog "Keeping Up With Jones Street" about the sometimes relevant but always impactful "goings on" at the North Carolina General Assembly.  To those outside the State, "Jones Street" is a reference to the location in Raleigh of the State's legislative office building.

The article can be accessed here in its website form, and it states:

HB 1101 - An Act to Enhance the Protection provided to Persons Making Improvements to Leased Real Property Under Article 3 of Chapter 44A of the General Statutes, as Recommended by the LRC (Legislative Research Commission) Committee on Mechanics Liens and Leasehold Improvements.  This bill would amend the statute concerning bond requirements for people making improvements to leased property; requires that anyone who leases property must secure bonds for changes to public buildings, and which parties must secure bonds; and provides that public-private partnerships subject to GS 143-128.1C are not subject to this bill. You can read the bill here: http://www.ncleg.net/Sessions/2013/Bills/House/PDF/H1101v0.pdf

HB 1102 - An Act to Clarify the Information Required to be Provided in a Notice to Lien Agent, as Recommended by the LRC Committee on Mechanics Liens and Leasehold Improvements.  This bill would amend the statute concerning the identification of life agent, notice to lien agent, and effect of notice to provide that service of the Notice to Lien Agent does not satisfy the service or filing requirements that apply to a Notice of Subcontract. Further, a Notice to Lien Agent cannot be combined with or refer to a Notice of Subcontract or a Notice of Claim of Lien upon funds. You can read the bill here: http://www.ncleg.net/Sessions/2013/Bills/House/PDF/H1102v0.pdf

The LRC on Mechanics Liens and Leasehold Improvements is made of House and Senate Members and held public meetings since adjournment last summer.

 

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