How Property Owners Can Remove an Invalid Mechanic's Lien in North Carolina

Dealing with Invalid Contractor Liens in North Carolina

Finding a mechanic's lien attached to your property's title can be a shocking and stressful discovery. In North Carolina, contractors, roofers, and material suppliers have the right to file a lien against your real estate if they claim they were not paid for their work under N.C. Gen. Stat. § 44A-7 et seq.. Unfortunately, some contractors use this powerful legal tool unethically, filing fraudulent, inflated, or legally expired liens to intimidate homeowners into paying disputed invoices. If your property in Greensboro, Wilmington, or anywhere else in the state is encumbered by a baseless lien, you have strong legal remedies to remove it. You can browse our USA Lawyer Directory to find an experienced North Carolina real estate litigation attorney to help clear your title.

The Strict Deadlines: 120 Days to File and 180 Days to Enforce

The most common way an invalid lien is defeated in North Carolina is simply through the passage of time. Under N.C. Gen. Stat. § 44A-12, a contractor must file a Claim of Lien on Real Property with the Clerk of Superior Court within 120 days of the last date of furnishing labor or materials. Furthermore, under N.C. Gen. Stat. § 44A-13, the contractor has exactly 180 days from that last date of furnishing to file a formal lawsuit to enforce the lien. Filing the lien is not enough; they must actually sue you in a court like Guilford County Superior Court, Greensboro or New Hanover County Superior Court, Wilmington. If the contractor fails to file the lawsuit and issue a Form AOC-CV-100, North Carolina, Administrative Office of the Courts, Civil Summons within that strict 180-day window, the lien automatically expires and becomes legally void. The property owner can then demand the cancellation of the expired lien from the public record.

Step-by-Step Options to Remove the Lien

If you cannot wait for the 180-day enforcement deadline to expire because you are trying to close a sale or refinance your mortgage immediately, North Carolina provides tactical methods to force the lien's removal.

Bonding Off a Lien Through the Court

If you need your title cleared today, you can bond off the lien. Under N.C. Gen. Stat. § 44A-16, a property owner can discharge the lien by depositing cash with the local Clerk of Superior Court equal to 100 percent of the amount claimed, or by posting a corporate surety bond equal to 125 percent (1¼ times) of the claim. Once this cash deposit or surety bond is posted, the Clerk will immediately discharge the lien from your real estate, completely freeing your title. The contractor's claim is then transferred from your physical house to the bond money sitting with the court. You can then litigate the actual invoice dispute without your property being held hostage.

Suing a Contractor for Slander of Title

If a contractor maliciously filed a completely false lien-for example, claiming they replaced your roof when they never even stepped foot on your property-you can go on the offensive. You can file a lawsuit for Slander of Title. To win, as demonstrated in legal precedents dealing with false encumbrances like Broughton v. McClatchy Newspapers, Inc., 161 N.C. App. 20 (NC Court of Appeals 2003), you generally must prove that the contractor filed the lien with malice and knowing it was false, which resulted in direct financial damages (such as a lost home sale). If successful, the court will strike the lien and may award you compensation for your damages and attorney fees.

Defending Against Subcontractor Claims of Lien Upon Funds

Sometimes you pay your general contractor in full, but they steal the money and fail to pay their subcontractors. In North Carolina, those unpaid subcontractors can file a Notice of Claim of Lien upon Funds. If you receive this notice, you must immediately stop paying the general contractor. If you ignore the notice and keep paying the general contractor, you can become personally liable to the subcontractor. However, if you have already paid the general contractor in full before receiving any notice from the subcontractor, the subcontractor generally has no valid claim against your property, and their lien can be successfully challenged in court.

How Much Does it Cost in North Carolina?

Removing a lien involves various court costs and potential legal fees, depending on the aggressive route you choose to take.

How Long Does the Process Take?

Bonding off a lien is incredibly fast; once the cash or surety bond is arranged, the Clerk of Court can discharge the lien from your title in a matter of days. Conversely, waiting out the statutory enforcement period takes up to 180 days from the contractor's last date of work. If you choose to litigate the dispute and sue for slander of title, a civil lawsuit in North Carolina Superior Court can take anywhere from 9 to 18 months to reach a resolution.

Frequently Asked Questions (FAQ)