On June 28, 2012, Senate bill 42 was ratified by the NC Legislature and was signed by the Governor on July 12, 2012. This bill is effective April 1, 2013. The new bill makes very meaningful and positive changes to the mechanics' lien law in North Carolina by introducing the required use of mechanics' lien agents on most residential and commercial construction transactions. The bill provides a long overdue notice vehicle to protect consumers, lenders, and title insurance companies from hidden liens.
Investors Title provided seminars for attorneys and builders throughout the state on the new statutory changes. If you were unable to attend one of our seminars and would like practical information on how to navigate through the new statutory requirements, you can view the
Nuts & Bolts of the Mechanics' Lien Law Seminar, On- Demand.
LiensNC Live on April 1
Since the passage of the legislation, Investors Title has been working with industry partners to establish a convenient, electronic, and centralized information repository for use by lien agents and those who post notices with or use lien agents. This repository is known as LiensNC. Investors Title Insurance Company will utilize
www.liensnc.com as its online clearinghouse for lien agent related filings.
As a closing attorney, you will be able to search the website for filed notices and request email notification of additional filings free of charge. To request email notification free of charge, you must choose the "Closing Notice" option linked to the Appointment of Lien Agent. Other parties can request email notification of additional filings by choosing the "Track This" option but will be charged for this service.
Once you've registered as a closing attorney on LiensNC, you may view the demonstration video and also review the website's Guide page for additional information. To view either the video or the Guide page visit
www.liensnc.com on April 1.
Investors Title Insurance Company is registered as a lien agent and appreciates the opportunity to act as lien agent for your client's construction projects. For more information on appointing Investors Title Insurance Company as lien agent click
here.
New Forms
The NC Land Title Association has created three new forms to be used in connection with construction related closings when a lien agent has been appointed:
- NCLTA Form 5, Owner Affidavit and Indemnity
- NCLTA Form 6, Waiver and Release of Liens
- NCLTA Form 7, Subordination of Liens
Investors Title has also made a minor revision to the following title opinion forms:
- Preliminary Title Opinion (revised to identify the lien agent when a lien agent is appointed)
- Final Title Opinion (revised to identify the lien agent when a lien agent is appointed)
Investors Title is excited about implementation of the new lien agent system and the launch of
www.liensnc.com. We believe the statutory changes, together with the efficiency provided by the LiensNC website, will be a valuable tool for the parties involved in construction real estate transactions.
We anticipate that you will have questions related to the new statutory changes. As always, Investors Title is committed to supporting you in your real estate practice. If you or your clients have questions about the new statutory provisions or the LiensNC system, do not hesitate to contact one of our title attorneys for assistance.
