North Carolina Lien: A Complete Guide to Liens in the State

A lien is a formal claim filed on real estate to ensure that a debt or other commitment is paid back. It stops property owners from selling, refinancing, or transferring ownership until the lien is settled and grants creditors enforceable rights after it is lodged. Understanding North Carolina's regulations is crucial because state-by-state variations exist in lien laws.

What Is a Lien in North Carolina?

A lien is a creditor's legal right to retain ownership of a debtor's property in North Carolina until the obligation is paid off. The primary legislation about liens in North Carolina is found in Statutory Liens and Charges, Chapter 44A of the General Statutes.

Liens can be affixed to personal property (cars, business assets, or equipment) or real property (houses, land, and commercial structures). Liens alert purchasers, lenders, and title firms to unpaid debts after they are filed and become part of the public record.

Liens can stop property owners from selling or refinancing until they are paid off. Lien checks are an essential component of due diligence for purchasers. Liens give creditors a legitimate and enforceable way to demand payment.

Types of Liens in North Carolina

The most common liens filed in North Carolina include:

1. Claim of Lien on Funds

This type of lien is typically called a subcontractor's lien. In the building chain, this particular kind of lien is attached to the money that a higher-tier party owes a lower-tier party. A lien may be placed on the money the property owner still owes the general contractor, for instance, if a subcontractor is not paid by the main contractor.

1. Mechanic’s Liens

Also known as a Claim of Lien on Real Property in North Carolina, this is the traditional mechanic's lien that secures payment for contractors, subcontractors, and suppliers who furnish labor, materials, or services for the improvement of real property. If correctly filed and enforced, it might result in a foreclosure auction to pay off the debt because it immediately attaches to the property.

1. Lien for Labor or Materials

This is a broad category that includes jewelers, furniture repairers, and vehicle mechanics, among others, who enhance or service personal property. The service provider can keep the property until the client pays for the work thanks to the lien.

1. Landlord’s Liens

After a tenant leaves, a landlord has a lien on any personal belongings they left on non-residential property. This lien secures damages and unpaid rent.

1. Storage and Towing Liens

These comprise liens for the storage and towing of motor vehicles as well as liens for unpaid rent imposed by owners of self-service storage facilities.

1. Liens of Hotels and Boardinghouses

These liens allow the owners of these establishments to seize a visitor's personal belongings to collect payment for their stay.

How to Search for Liens in North Carolina

Lien records in North Carolina are public and may be accessed through:

• County Register of Deeds Offices: Each of the 100 counties in North Carolina has a county register of deeds office that keeps track of property and lien filings. You have the option to search by name, parcel ID, or property description..
• Online County Databases: Larger counties such as Wake (Raleigh), Guilford (Greensboro), and Mecklenburg (Charlotte) have online databases that provide access to property and lien information.
• North Carolina Court Records: The state's online case access system, nccourts.gov, allows users to search for judgment liens.
• Title Companies and Third-Party Services: Complete lien searches, particularly for real estate transactions, are offered by title companies and third-party services.

The name of the lienholder, the amount owed, the filing date, and a description of the property are usually included in lien filings.

Lien Records in Major North Carolina Cities

Because lien records are county-based, searches must be conducted in the appropriate office:

• Charlotte (Mecklenburg County): Lien filings are kept up to date by the Mecklenburg County Register of Deeds and are accessible both in person and online.
• Raleigh (Wake County): The Wake County Register of Deedsmanages property and lien records with an online search system.
• Greensboro (Guilford County): The Guilford County Register of Deeds provides property and lien record searches.
• Durham (Durham County): The Durham County Register of Deeds keeps track of lien records.
• Winston-Salem (Forsyth County): The Forsyth County Register of Deeds manages lien and deed filings.

Each county sets its own rules regarding online access, fees, and certified document copies.

How Long Does a Lien Stay on Property in North Carolina?

Lien duration in North Carolina varies depending on the type:

• Property Tax Liens: These remain until taxes are paid or the property is sold at foreclosure. These liens have a redemption period that typically lasts 10 years.
• Mechanic’s Liens: Mechanic’s liens must typically be enforced within 180 days of the last furnishing of labor or materials, or they expire.
• Judgment Liens: Judgment liens are valid for 10 yearsin North Carolina.
• Mortgage Liens: These remain valid until the mortgage loan is fully satisfied and a cancellation is recorded.
• Tax Liens (IRS/State): Federal tax liens last 10 years, while state tax liens follow North Carolina’s collection statutes.

If not properly released, liens may remain in public records even after debts are settled.

How to Remove a Lien in North Carolina

Removing a lien in North Carolina requires addressing the debt or disputing the lien’s validity. Common methods include:

1. Paying the Debt in Full: A release must be issued by the lienholder upon payment and submitted to the county register of deeds.
2. Negotiating a Settlement: Creditors may agree to accept reduced repayment terms, followed by recording a release.
3. Court Petition: Property owners may seek removal of fraudulent, invalid, or improperly filed liens in court.
4. Recording a Release or Satisfaction: Property owners should confirm that the lienholder records the release to ensure a clear property title.

Without a properly recorded release, liens may remain active and obstruct future sales or refinancing.

In North Carolina, liens play a significant role in both debt and property law. They require property owners to fulfill their financial responsibilities while protecting creditors. Buyers, sellers, and lenders must all be aware of the several kinds of liens in North Carolina, how to look for them, how long they last, and how to get rid of them.

Seeking advice from a registrar of deeds, title business, or lawyer guarantees that liens are appropriately settled because North Carolina has stringent timeframes and county-based recording systems. Property owners can preserve clear titles and facilitate more seamless real estate transactions with the right management.