Bill Summaries: S864 (2011-2012 Session)

Tracking:
  • Summary date: May 22 2012 - View summary

    Identical to H 1052, filed 5/22/12.

    Makes modifications to the statutes governing liens on real property as follows. Adds several defined terms and clarifies definitions in GS 44A-7. Makes a conforming change to repeal GS 44A-17. Amends GS 44A-11 to expand the steps required to perfect a claim of lien on real property, including service of the claim of lien upon the record owner of the real property and also upon the contractor if applicable. Amends GS 44A-12 to clarify the form required for claims of lien on real property and to add forms for partial lien waivers and final lien waivers. These changes apply to improvements to real property commenced on or after January 1, 2013, and to improvements with the required first permit obtained on or after January 1, 2013.
    Effective when the act becomes law, adds subsection (d) to GS 44A-13 to provide that a former owner of improved property, as described, is not a necessary party in an action to enforce a claim of lien.
    Amends GS 44A-18 (concerning perfection of lien upon funds) to clarify that second tier and third tier subcontractors may perfect their claims by service of the notice of claim of lien upon funds to the extent of the claim. Clarifies that a lien on funds granted under this statute arises, attaches, and is effective immediately when the subcontractor first furnishes labor, material, or rental equipment at the improvement site and is perfected when written notice is given to the obligor. Enacts new subsection (g), permitting any owner or contractor against whose interest the lien is claimed to make, receive, or use payments until a claimant provides the required written notice. Amends GS 44A-20(d) to add that a lien waiver signed by the contractor before the claim of lien on real property is filed waives the subcontractor's right to a claim of lien on real property but does not affect the subcontractor's rights to a claim of liens on funds. Makes modifications to the items included by first tier subcontractors on a claim of lien form in GS 44A-23. Amends GS 44A-24 (concerning false statements) to also make any person making a false written statement about the amount due subject to a claim for unfair and deceptive practice. Makes any person who signs or directs another person to sign the written statement guilty of a Class 1 misdemeanor and subject to a claim for unfair and deceptive practice. Also makes any offense by a licensed contractor or qualifying party that causes harm subject to specified disciplinary action. Amends GS 44A-27 (concerning payment bonds) to require a contractor to furnish a payment bond within seven days of a claimant's written request. Limits the claim as detailed, unless the contractor does not timely provide the payment bond. Sets out a sample notice of public subcontract form and modifies the notice requirements. Requires notice of public subcontract only for portions of claims exceeding $10,000. Sets out required components for a contractor's project statement, which must be provided for contracts with bonds. Makes additional clarifying and conforming changes to several provisions governing statutory liens on real property. These changes apply to improvements to real property commenced on or after January 1, 2013, and to improvements with the required first permit obtained on or after January 1, 2013.
    Modifies provisions in GS Chapter 44A to remove registered mail as an option for providing notice.
    Amends GS 105-362(b)(2) (concerning discharge of lien on real property) to clarify that a part of real property, listed as one parcel and then divided into a separate parcel, must (was, may) be released from the tax lien, after the part's assessed value has been certified by the county assessor (was, tax supervisor) and payment of all past-due taxes on both parcels and all penalties and interest have been paid. Applies to taxes imposed in tax years beginning on or after July 1, 2012.