Claiming a Lien Against Construction Funds in North Carolina

In addition to claiming a lien against a real property, contractors can also lien on construction funds regardless of tier. Therefore, a subcontractor has lien rights against any funds that are owed to the party that hired the subcontractor. A lien can be claimed to the extent money is owed to the party occupying the position in the chain above the subcontractor. N.C.G.S. 44A-18.

The subcontractor's right to a lien becomes ripe as soon as labor or materials are first furnished on the job and relates back to the date the contractor or supplier first furnished labor, services, or materials on the project.

The notice of a claim of lien upon funds must set forth all of the following information: (1) the name and address of the person claiming the lien upon funds; (2) a general description of the real property improved; (3) the name and address of the person with whom the lien claimant contracted to improve real property; (4) the name and address of each person against or through whom subrogation rights are claimed; (5) a general description of the contract and the person against whose interest the lien upon funds is claimed; and (6) the amount of the lien upon funds claimed by the lien claimant under the contract. N.C.G.S. 44A-19(a).

The notice must also be served on the obligor (debtor) by personal delivery or in any manner authorized by Rule 4 of the North Carolina Rules of Civil Procedure. N.C.G.S. 44A-19(d). A copy of the notice of claim of lien upon funds shall be attached to any claim of lien on real property filed pursuant to G.S. 44A-20(d). Id.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice of a legal professional. Please contact an attorney with questions about claiming a lien on funds, or any other issues related to liens in North Carolina.

How to Use This Form

Select your county from the list above
Download the county-specific form
Fill in the required information
Have the document notarized if required
Record with your county recorder's office

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Common Uses for Claim of Lien Against Construction Funds

Notify a property owner of unpaid construction debts
Establish priority of a construction lien on a property
Protect a contractor's right to payment for work performed
Document consent of the property owner for improvements
File a final lien waiver after project completion and payment

Compare other North Carolina deed forms and documents

Quitclaim Deed Gift Deed Warranty Deed Special Warranty Deed Grant Deed Correction Deed Beneficiary and Executor Deed Executor Deed Beneficiary and Administrator Deed Durable Power of Attorney Limited Power Of Attorney For Real Property Easement Deed Termination of Easement Mineral Deed Quitclaim Mineral Deed Notice to Lien Agent Notice of Contract Notice of Subcontract Claim of Mechanics Lien Conditional Lien Waiver on Progress Payment Unconditional Waiver on Progress Payment Conditional Waiver on Final Payment Unconditional Waiver on Final Payment Disclaimer of Interest Contract for Deed Memorandum of a Contract for Deed Release of a Memorandum of a Contract for Deed Deed of Trust Assignment of Deed of Trust Release Deed for Deed of Trust Deed of Partial Release Appointment of Substitute Trustee Certificate of Trust Notice of Lis Pendens Cancellation of Lis Pendens Notice

Important: County-Specific Forms

Our claim of lien against construction funds forms are specifically formatted for each county in North Carolina.

After selecting your county, you'll receive forms that meet all local recording requirements, ensuring your documents will be accepted without delays or rejection fees.

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