NORTH CAROLINA CONSTRUCTION LIEN LAW

Claimants. Under sec. 44A-8, parties entitled to birdcall a mechanics' lien include: "any person who performs or furnishes labor . . . or furnishes materials, pursuant to a contract, either express, or implied, with the owner of true lieu for the making of an improvement thereon." In 1975 this class of persons was expanded to include complex body part architects, surveyors and engineers and furnishers of rental construction equipment. Subcontractors are granted such liens under sec. 44A-18. The contract in question need not be in writing. A materialman must have a contract to deliver his materials to the commit but they need not actually be corporal in such improvements for a lien to attach. Design Assocs. v. Powers, 86 N.C. App. 216, 356 S.E.2d 819 (1987).

Problem of the Overeager Purchaser. Douglas discusses the case of a purchaser of real property who, before he ever acquires title thereto, orders the counterbalance of construction. Does his action thereby give rise to a materialman's statutory lien, which would take precedence over a construction lender's deed of conveyance of trust? Sec. 44A-7(3) defines an 'owner' as "a person who has an interest in the real property improved and for whom an improvement is made and who order the improvement to be made." Douglas says "the trend in the law instantly is

When a Lessee Can designer an Owners' (Lessor's) Interest to Become Subject to a Mechanics' Lien. Sec. 44A-7(4) defines "real property" as "the real estate that is improved, including lands, leaseholds, tenements and hereditaments, and improvements placed thereon." agree to Urba et al., the Lessee understructurenot support the Lessor and his land as a result of improvements which were left to the picking of the Lessee but the Lessor apprise be bound if the Lessee was required to withdraw the improvement.

W. H. Dail Plumbing, Inc. v. Roger Baker Assocs., 78 N.C. 664, 338 S.E.2d 135, cert. denied, 316 N.C. 231, 345 S.E.2d 398 (1986).

to protect the materialman's interest in the proceeds of his labor by viewing the construction loan as a fund for benefit of the materialman" (939-40).

The rationale is the lender can protect himself by inspecting the site and seeing what sort of impart is transpiring there. In accord, Carolina Bldrs. Corp. v. Howard-Veasey Homes, Inc., 72 N.C. App. 224, 324 S.E.2d 626, cert. denied, 313 N.C. 597, 330 S.E.2d 606 (1985).

Mechanics' Liens v. North Carolina Commercial commandment Security Interests. The Uniform Commercial Code is in pull up in North Carolina, N.C. GEN. STAT. 25-9-101 et seq. (2002). A contractor or subcontractor who furnishes materials which perform part of a fixture to the real property, such as an air conditioning unit, may obtain and complete a security interest in that fixture under sec. 25-11-10. It can also obtain a mechanics' lien in cut-and-dry building materials but cannot obtain a U.C.C. security interest. According to Urba et al. "the North Carolina case law . . . is not very instructive on the issue of whether a vendor of materials which become fixtures may obtain a mechanics' lien" (291). They express the opinion that "it would bet that the North Carolina courts could properly hold that the vendor of fixtures may perfect and enforce a mechanics' lien" (291).

Precision Walls, Inc. v. Crampton, 196 B.R. 299 (E.D. N.C. 1996). Title I of
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