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A mechanic's lien is a legal document used by contractors, subcontractors, and suppliers to secure payment for work completed on a construction project. Filing a mechanic's lien essentially states that:
- You're owed money for services provided
- You're expecting payment by a specific date
- You'll proceed with litigation if you don't receive payment by that date
While a lien is in place, it restricts the owner from selling, refinancing, or transferring the property without paying you. That pressure makes liens one of the most powerful payment tools available—especially for subcontractors and suppliers.
Mechanic's lien laws vary significantly by state, with different rules governing who can file a lien, what notices are required, and timelines for filing and enforcement. This guide covers the essentials of North Carolina's mechanic's lien laws to help you protect your right to payment.
On projects $40,000-plus, must send a Notice to Lien Agent within 15 days of first furnishing labor or materials
On projects $40,000-plus, must send a Notice to Lien Agent within 15 days of first furnishing labor or materialsIf a Notice of Contract is filed, 2nd- and 3rd-tiers must serve a Notice of Subcontract to preserve subrogation rights
On projects $40,000-plus, must send a Notice to Lien Agent within 15 days of first furnishing labor
Not required
Not required
Not required
Within 120 days after last work on the project
Claim of Lien Upon Real Property: Within 120 days after last furnishing of labor and materials
Claim of Lien Upon Funds: No fixed 120-day deadline; serve while funds are still owed
Within 120 days after the last day of labor
Within 180 days after last work on the project
Claim of Lien Upon Real Property: Within 180 days after last furnishing
Claim of Lien Upon Funds: Generally tied to the contract’s statute of limitations
Within 180 days after the last day of labor
Unpaid balance of the contract with the owner
Unpaid value of labor or materials furnished
Unpaid wages for labor performed
Mechanic's lien rights in North Carolina are governed by Chapter 44A, Article 2 of the North Carolina General Statutes and apply only to private construction projects. Public projects cannot be liened. If you're unpaid on public work, your remedy is through a payment bond or a lien on funds, not a lien against real property.
North Carolina is different from many states because it provides two distinct statutory payment protections:
- The first is the Claim of Lien on Real Property, which is a recorded lien against the property itself. This is directly available to parties with a direct contract to the owner, like GCs. Subcontractors can sometimes pursue this type of lien through subrogation, meaning they step into the GC's shoes to claim amounts the owner still owes under the prime contract.
- The second is a Notice of Claim of Lien Upon Funds, which is a claim against unpaid contract funds held by the party above you in the contracting chain. Once this notice is served, the party holding the funds must retain them. This is the remedy that a subcontractor in North Carolina is most likely to leverage.
With this framework in mind, let's get into the details.
In North Carolina, mechanic’s lien rights are available to parties who furnish labor, materials, equipment, or qualifying professional services to improve real private property. This includes:
- General (original) contractors
- Subcontractors at any tier (first-, second-, or third-tier)
- Material suppliers furnishing materials for the improvement
- Laborers and tradespeople performing on-site labor
- Equipment rental companies, when the equipment is used directly on the project
- Design professionals (architects, engineers, land surveyors, and landscape architects) providing qualifying services (N.C. Gen. Stat. § 44A-7(3))
In North Carolina, mechanic’s liens require work that "improves" real property—meaning any permanent physical or professional change that adds value to the land or structure.
Here are some examples of what’s generally considered lienable and what is not.
Lienable Work in North Carolina
- Construction, alteration, repair, or demolition of structures
- Excavation, grading, clearing, filling, and landscaping
- Construction of driveways and private roadways
- Labor performed on-site for the improvement
- Materials furnished for use in the improvement
- Rental equipment directly used on the project site
- Qualifying architectural, engineering, surveying, and landscape design services
Non-Lienable Work in North Carolina
- Work on public projects
- Work unrelated to improving the real property
Before filing a lien in North Carolina, make sure you’ve met any notice or preliminary requirements that apply to your role (see table above).
Filing a Claim of Lien on Real Property (GCs Mainly)
- Deadline to file: Claim must be filed no later than 120 days after last furnishing of labor or materials at the site.
- Filing location: With the Clerk of Superior Court in each county where the property is located.
- Form requirements: North Carolina provides a statutory Claim of Lien on Real Property form, which must include:
- Claimant name and address
- Record owner name and address (and, if asserted through subrogation, the contractor name)
- Property description sufficient enough to identify it
- Name and address of the claimant’s hiring party
- Dates upon which labor or materials were first and last furnished
- A general description of the labor performed or materials furnished and the amount claimed
- Verification: The lien claim must be signed by the claimant and verified under oath.
- Filing fee: Varies by county.
- Service deadline: In North Carolina, a lien is not valid unless a copy is served on the property owner by personal delivery or by mailing through authorized delivery services. If the lien is asserted through the prime contract (through subrogation), a copy must also be served on the GC (N.C. Gen. Stat. § 44A-11(a)-(b)).
Filing a Notice of Claim of Lien upon Funds (Subs and Suppliers)
North Carolina’s “lien on funds” is not recorded the same way as a property lien. Instead, it arises automatically upon first furnishing at the site but has no practical effect until a Notice of Claim of Lien upon Funds is served to the correct party up the chain (N.C. Gen. Stat. § 44A-18).
- Service deadline: There is no strict deadline; the notice just must be served while the funds are still held by the obligor (the party holding payment).
- Service methods: The notice must be served by personal delivery or any method authorized by Rule 4 of the North Carolina Rules of Civil Procedure.
- Form requirements: North Carolina provides a statutory Notice Claim of Lien upon Funds form, which must include:
- Claimant name and address
- Name and address of the claimant’s hiring party
- Names and addresses of all parties in the contract chain
- Property description sufficient enough to identify it
- A general description of the labor performed or materials furnished
- The exact amount claimed
Recording a lien preserves your rights—but enforcement is how you get paid. Here’s what you must do to ensure you enforce your lien in North Carolina.
Enforcing a Claim of Lien on Real Property
- Enforcement deadline: You must file a foreclosure lawsuit within 180 days after last furnishing of labor or materials. Note that the deadline runs from the last work, not the filing date.
- Notice of lis pendens: If the property is in a different county than where the lawsuit is filed, you must also file a notice of lis pendens in that county within the same 180-day window to protect your priority against future buyers.
- Filing location: The Superior Court in the county where the property is located.
- Lien priority: Priority is determined during the enforcement action and relates back to the claimant’s first furnishing of labor or materials.
- Lien release: Once payment is resolved or the lien is discharged, the lien claimant must record a satisfaction or cancellation with the Clerk of Superior Court (N.C. Gen. Stat. § 44A-16(a)(1)–(2)).
Enforcing a Claim of Lien upon Funds
Once the obligor (the person who holds the funds) receives a notice, they must retain funds subject to the lien up to the lien amount(s).
- Deadline: North Carolina lien law doesn’t provide a single enforcement deadline. The safest approach is to talk with counsel early so you don’t miss a deadline tied to your contract or claim.
- Lien priority: This lien has priority over all other interests or claims created in the funds, including garnishments, attachments, or assignments (N.C. Gen. Stat. § 44A-22).
- Lien release: The claimant must acknowledge satisfaction or release the claim in writing once paid (N.C. Gen. Stat. § 44A-16).
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North Carolina’s lien laws don’t really address this. However, if the work required a license and the contractor was unlicensed, lien rights may be limited or unavailable. So, if you’re unsure whether licensing applies to your scope, it’s worth confirming before relying on lien rights.
Yes, but how your lien works depends on your role and where you sit in the contract chain.
In North Carolina, parties who contract directly with the owner (typically GCs) can file a Claim of Lien on Real Property based on their own contract.
Subcontractors and suppliers don’t have independent lien rights against the property itself, but they can still protect payment in two ways:
- Lien upon funds: Subcontractors and suppliers commonly protect payment by serving a Notice of Claim of Lien Upon Funds, which legally freezes unpaid contract money higher up the chain. This is often the first and most effective pressure point.
- Lien on real property through subrogation: In certain situations, a subcontractor can enforce the GC’s lien rights against the property if the owner still owes money under the prime contract—but only if North Carolina’s notice rules were followed.
TL;DR: North Carolina lien rights are not only about who you contracted with, but also where unpaid money still exists and whether the right notices were sent at the right time.
No, statutory lien deadlines can’t be waived or shortened in advance by contract.
No, North Carolina does not require a Notice of Intent to Lien before filing a mechanic’s lien.
Often, yes, and the type of notice depends on how the project is set up.
North Carolina uses two different notice systems that can affect lien rights on commercial projects:
1. Notice to Lien Agent (most common)
If the owner designates a lien agent (generally required on projects costing $40,000 or more), most subcontractors, suppliers, laborers, equipment lessors, and design professionals should send a Notice to Lien Agent within 15 days of first furnishing labor or materials (N.C. Gen. Stat. § 44A-11.2).
Missing this notice can:
- limit lien priority, or
- cut off lien rights against later purchasers or lenders.
2. Notice of Subcontract (only if triggered)
On some projects, the owner or general contractor files a Notice of Contract early in the job (N.C. Gen. Stat. § 44A-23(b)). When that happens:
- Second- and third-tier subcontractors must send a Notice of Subcontract to the contractor to preserve lien rights that depend on the GC’s unpaid contract.
- If this notice isn’t sent, those lien rights can be lost—even if work was performed and payment is still owed.
If no Notice of Contract is properly filed and posted, this requirement does not apply.
No, North Carolina does not mandate statutory lien waiver forms. Parties are responsible for using their own forms. Read up on key details on North Carolina’s lien waiver requirements here.
You can lien for the amount earned for labor, materials, equipment rental, or qualifying professional services furnished to the project. This generally includes unpaid contract amounts and approved change orders tied back to work performed or materials supplied (N.C. Gen. Stat. §§ 44A-8, 44A-7(3)).
You cannot include:
- Anticipated or lost profits
- Consequential or indirect damages
- Penalties, interest, or late fees
- Attorneys’ fees or collection costs (though the court may award these to the prevailing party in certain circumstances)
No. Lien rights can arise from written or oral contracts, so long as labor, materials, equipment, or qualifying professional services were furnished to improve the property. That said, written contracts make it significantly easier to prove the amount owed and defend a lien if challenged.
Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Always consult with a qualified construction attorney in your state regarding specific legal matters before taking any action that could affect your lien rights.