After a Notice of Contract has been filed and posted, second or third tier subcontractors may preserve their lien rights by serving a completed and signed Notice of Subcontract form on the contractor by certified mail or personal service. If the Notice is not filed and served, that second or third tier subcontractor will be barred from filing a claim of lien against the owner's real property. N.C.G.S. 44A-23.

The Notice of Subcontract contains: (1) the name and address of the subcontractor; (2) a general description of the real property on which the labor was performed or the material was furnished (such as street address, tax map lot and block number, reference to recorded instrument, or any description that reasonably identifies the real property); (3) a general description of the subcontractor's contract, including the names of the parties; and (4) a general description of the labor and material performed and furnished. N.C.G.S. 44A-23(b)(3).

Filing the Notice of Subcontract requires the contractor to send notice to second and third tier subcontractors within five days of paying a subcontractor on the project. Id. The purpose of this notification is to provide notice that money is being exchanged between the parties.

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 sending a Notice of Subcontract, or any other issues related to liens in North Carolina.

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