Deadline #1 — Preserve the Lien on Funds (Subs & Suppliers Only)

North Carolina does not allow most subcontractors and suppliers to jump straight to a lien against the property. Instead, the law uses a two-step lien system, and both steps matter.

For subcontractors, sub-subcontractors, and suppliers, lien rights begin with a Lien on Funds, not a lien on the property itself.

To preserve a Lien on Funds, a lower-tier claimant must give notice:

Within 15 days after the claimant last furnished labor, materials, or services.

This notice is typically served on the party who owes the money (often the general contractor) and protects the claimant’s right to any unpaid contract funds still in the payment chain.

Why this matters:

If a subcontractor or supplier fails to preserve a Lien on Funds within this 15-day window, they lose the ability to later lien the real property, even if they are still unpaid.

In short: No lien on funds = no lien on the property for lower-tier parties.

General contractors do not need to preserve a Lien on Funds because they contract directly with the owner.

Deadline #2 — File the Lien on Real Property (All Claimants)

After preserving a Lien on Funds (if required), the claimant may file a Claim of Lien on Real Property.

This lien must be filed:

Within 120 days after the claimant last furnished labor or materials.

This deadline applies to all claimants, including general contractors. Missing the 120-day deadline permanently eliminates the right to file a mechanics lien against the property.

Deadline #3 — Enforcement of a North Carolina Mechanics Lien

Filing a mechanics lien in North Carolina does not automatically result in payment. To keep the lien alive, the claimant must enforce the lien by filing a lawsuit within the statutory enforcement period. If enforcement is not timely initiated, the lien expires by operation of law, even if it was properly filed.

A North Carolina mechanics lien must be enforced by filing a civil action:

Within one hundred eighty (180) days after the claimant last furnished labor, materials, or services to the project.

This enforcement deadline is not based on the lien recording date. Instead, it runs from the last date of furnishing, which means the clock may already be running before the lien is even filed.

CLAIM OF LIEN

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