Under the North Carolina General Statutes, contractors, subs and materials suppliers have a right to file a mechanic's lien against real property when they are are unable to secure payment from a project owner. Pursuant to §44A-8, Any person who performs or furnishes labor or professional design or surveying services or furnishes materials or furnishes rental equipment pursuant to a contract, either express or implied, with the owner of real property for the making of an improvement thereon shall have a right to file a claim of lien on the real property to secure payment of all debts owing for labor done or professional design or surveying services or material furnished or equipment rented pursuant to that contract. Liens can complicate, delay and perhaps terminate an owner's effort to sell or refinance his or her property however the statute also provides a mechanism for immediate relief. A North Carolina Mechanic's Lien Release Bond will clear the lien (bond off the lien) from the parcel.
To avail oneself of this lien discharge mechanism, the property owner must file the North Carolina Mechanics lien release bond in a sum equal to one and one-fourth timesthe amount of the claim or claims of lien on real property claimed in the filing. The surety bond must be conditioned upon the payment of the amount finally determined to be due in satisfaction of said claim or claims of lien on real property. The surety bond must be deposited with the clerk of court superior court upon receipt of which the clerk of superior court will cancel the claim.
The statute specifically addresses what is needed in order to release the surety bond back to the filing party. Pursuant to §44A-16, a clerk may release funds held or a corporate surety bond upon receipt of one of the following:
Understanding the release process is important as most lien discharge bonds are secured by collateral. Return of collateral is contingent on release of the surety bond.
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