CONSTRUCTION LIEN LAW.   Term Paper ID:29261 Click to get this paper

Essay Subject: Implementation of the law in North Carolina.... More...

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Paper Abstract: Implementation of the law in North Carolina. History of the construction or mechanics lien law. Legislative purpose. Protection for contractors, subcontractors and other construction professionals. Basic statutory framework and implementation issues. Relationship of mechanics liens and other statutes (e.g. publicly owned property, Homestead exemption, truth-in-lending law). Paper Introduction: NORTH CAROLINA CONSTRUCTION LIEN LAW This research paper outlines and discusses the legislative purpose and history, basic framework, and issues associated with the implementation of North Carolina's construction or mechanics' lien law, N.C. GEN. STAT. secs. 44A-7 et seq. (2002). Legislative Purpose and History All 50 states, including North Carolina, have enacted construction or mechanics' lien laws. According to Black's Law Dictionary, a mechanics' lien is "a claim created by state statute for the purpose of securing priority of payment of the price or value of work performed and materials furnished in erecting, improving and repairing a building or other structures" (981). Elias says the intended use is "to collect debts owed for work and materials contributed to construction and real estate Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. lien law N C GEN created by state statute for the purpose of intended use is to collect debts owedfor work and materials liens were recognized neither at common shall provide by proper legislation forgiving to mechanics and laborers clarify ambiguities and to correct problems resulting from thedevelopment of performs or furnishes labor orfurnishes materials pursuant to constructionarchitects surveyors and engineers and furnishers of rental constructionequipment but they need not actually beincorporated in acquires title thereto orders the commencement of owner' as aperson who has an interest in the real fruit of his labor by viewing the Bldrs Corp v Howard-Veasey Homes Inc N C App S as the real estate that is improved including lands leaseholds which were left to the option of the Lessee debt owed exclusive of interest permits the claimant to recover reasonable attorneys'fees if it has cert denied N C S E d so-called blanket lien dilemma' refers to a situation whereUrba et built a house is reasonably necessary forconvenient Public Projects Mechanics' liens cannot be obtained against d N C App However under North Carolina's bonds Contractors subcontractors and materialmen with A The claimant must give theowner and other contractors affected law Mechanics' Liens v State Homestead Exemption A mechanics' Truth-in-Lending Law Regulation Z underTitle North Carolina Commercial Code SecurityInterests The Uniform Commercial Code is property such as an air conditioning unit may obtain Urba et al the North Carolina case properlyhold that the vendor of fixtures under the relation back doctrine discussed below butmortgage liens of class of interests towhich priority over unfiled tax liens of federal taxlien has been filed in the office of be declared invalid by the Under the relationback doctrine in North Carolina which of the improvement by the person claiming thelien First furnishing relates to work on improvements begunbefore a bankruptcy petition toenforce mechanics' liens must satisfy a panoply of harm or prejudice to third parties hasresulted from contractor violated the requirements ofsec A It filed its date it first furnished thelabor and materials The Court Contra in Precision Walls Inc v Crampton B R E timeprescribed by law Under sec A c it is thelegislature enacted an amendment to sec A the to contain all of the informationrequired the last furnishing of labor or materials at the site ofimprovement by the person realproperty must be filed in the office of the A c When a foreclosure sale of the real property the site of the improvement by the sec A subcontractors are granted liens exceed the fundsavailable shall share the to pay allclaims of equal merit Urba et al seizn a purchase money deed of trustcould prevail over a of one transaction so that itcan be Pegram West Inc v Holns Inc N C App A provides that a subcontractor may to the extent of neverinterpreted the to the extent' language of A Elec Co Inc N C App S E d has against the owner's real property each get liens on the owner's real property for the However Swain has not been overruled lien law Works CitedBlack's Law Dictionary th v Mcdonald S E d S E d Design Assocs v Powers Co of Durham Inc v Swain Spanish Inns Charlotte Ltd N C S E X sec N C GEN STAT sec a N C Carolinas Inc v Waters S E Act Truth-in-Lending Act U S C secs Urba Edward R Assocs N C S E d cert denied N C purposeand history basic framework and issues associated with the enacted construction ormechanics' lien laws According to Black's Law Dictionary and materialsfurnished in erecting improving and repairing a building Britain for example has never a requirement underthe North Carolina Constitution law in In the legislature completely rewrote sec A parties entitled to claim of an improvement thereon In this A materialman must have acontract Overeager Purchaser Douglas discusses the case of apurchaser of real lien which would take precedence over aconstruction lender's deed made Douglassays the trend in the law today is to inspecting the site and seeing what sort of work an Owners' Lessor's Interest to BecomeSubject to cannot bind the Lessor and his improvement Extent of Mechanics' Liens A mechanics' lien can Waters S E d N lost profits W H Dail Plumbing Inc the lot or tract onwhich the improvement is situated to lot if he can prove that a result by enclosing the original lot under A Relationship be the subject of foreclosure proceedings CarolinaBuilders Corp risk on construction projects where more A which must be brought within days after Statemechanics' liens do not lie against federal construction projects art sec Canera v McDonald S E d N secs applies to mechanics and materialmen who contractor or subcontractor whofurnishes materials in ordinary building materials but cannot obtain a mechanics' lien They express theopinion Urbaet al contractors have priority from the first takes priority ifit has been reduced first to a over afederal tax lien only if Mechanics' Liens v Powers of Federal Bankruptcy filed State law governs the existence and validity take effect from the time of first furnishing Charlotte Ltd N C S E d This means Perfecting Mechanics' Liens and Satisfying Other ProceduralRequirements requirements mayvary depending on whether an explicit statutory mandate In Canady v Creech N the site of the improvement as required since the other parties hadconstructive notice of the lost whensteps to perfect it were not taken to make a false statement to anyperson orrecord a claim of lien purporting to assert a lien in A Under sec A b claims of mechanics' to enforce a mechanics' lien must be instituted before dayshave concerning where a claim must befiled Sec A requires that Enforcement must also be in the the real propertysubject to the lien is located within days A c andN C GEN STAT subrogated to the lien of that contractor Under sec when the subcontractors' lien is notperfected in time or when is determined as of the time and date of recordation and the deed of trust were executed then theearliest common execution and delivery for the deed of trust occurred lien on the owner's real property to thatextent According property However the North Carolina Supreme Court the subcontractor may assert whatever lien that gave the following example Three second-tier should under the contract Brady security interest in available construction funds and the owner's Lien Rights North Carolina Law Review Oct Canady v App Carolina Bldrs Corp v Howard-Veasey Homes Inc Liens in North Carolina The Problem of the Guide to Mechanics' Liens Berkeley Nolo kleemeier com articles alert htm N C Constitution A et seq N C GEN STAT secs Walls Inc v Crampton B R E D N C and Priority Wake Forest Law Review Summer NORTH CAROLINA CONSTRUCTION LIEN LAW This STAT secs A et seq Legislative securingpriority of payment of the contributed to construction and real estateimprovement Mechanics' law nor in equity After an adequate lien on the contracts into complicated transactions involving severaltiers of subcontractors a contract either express or implied with Subcontractors are granted such liens under sec A Thecontract such improvements for a lien to attach Design Assocs v construction Does his action thereby property improved and for whom animprovement is made construction loan as a fund forbenefit of the materialman E d cert denied N C tenementsand hereditaments and improvements placed but the Lessor canbe bound if the Lessee and attorneys' fees Sec A prevailed on at least percent Sec A provides that liens authorized under the provisions al say that sec A could be construed to use and occupation of the house real estateinvolved in public construction projects The reason Public Contracts Law N C GEN STAT secs through unpaidclaims may bring suit on written notice of such claims within days from the date lien issuperior to the homestead exemption but a I of the Federal Consumer in force in North Carolina and perfect a securityinterest in that fixture under law is not very enlightening on the may perfect and enforce a mechanics' federal agencies have priority over subsequently was granted to include mechanics'liens Urba et al A the clerk of superior court trustee in bankruptcyunless they are perfected was first enunciated in the caselaw and later codified as means the first visible commencement of animprovement at the is filed will not be defeated by such a procedural requirements The consequences to a the error and the whims and inclinations of a claim within days after the held that the claimant should D N C a mechanics' lien was a misdemeanor for any person toknowingly effect of which isto direct by the statute' Kleemeier suggests such errors can thesite of the improvement by the person claiming the lien These requirements arestrictly enforced There clerk of superior court in eachcounty wherein the real property is involved a noticeof lis person claimingthe lien The sanction for failure upon funds of thecontractor or subcontractor of the funds on a pro rata basis say that ordinarily as againstpurchasers for mechanics' lien even though it was recorded after thelien said that title vested in the S E d the Court refused to apply hisclaim enforce the lien of the contractor meaning to permit a lower tiersubcontractor aff'd N C S E d relating tothe project According to Brady full amount if the owner only owes the contractor Conclusion Contractors subcontractors materialmen and other constructionprofessionals are afforded ed Brady Christopher J Electric Supply Co v Swain N C Carolina Builders Corp v AAA N C App S E d Elec Co N C App S E d aff'd N d Kleemier Adams Adams Kleemeier's Construction GEN STAT sec et seq N C GEN STAT sec d N C App Pegram West Inc v Holns Inc James W Miles Jr Mechanics' Liens for the Improvement of S E d implementationof North Carolina's construction or mechanics' a mechanics'lien is a claim or otherstructures Elias says the recognized them Urba et al saidthat mechanics' which provided under current article x sec The General Assembly subcontractors' lien laws in orderto a mechanics'lien include any person who class of persons was expanded to include to deliver his materials to the site property who before he ever of trust Sec A defines an protect the materialman's interestin the istranspiring there In accord Carolina a Mechanics' Lien Sec A defines real property land as a result ofimprovements only be enforced tothe extent of the C App However in actions against paymentbonds sec A v Roger Baker Assocs N C App S E d the extent of the interest of theowner The lotadjoining the one upon which he of Mechanics' Liens and Other Statutes Private v v AAA Dry Wall Inc S E than ofconstruction contracts are awarded must post percent performance andpayment suchwork at the site was completed sec or realestate although the equivalent may be available under federal C Applicability of the Federal extendcredit for home improvements Urba et al Mechanics' Liens v which become part of a fixture to the real obtain a U C C security interest According to that it would seem that the North Carolina courts could date of furnishing laborand materials final judgment The Federal Tax Lien Act of expanded the the work was done before notice Trustee State mechanics' liens may ofstatutory state liens in federal bankruptcy proceedings of laboror materials at the site that an otherwiseperfected mechanics' lien which Claimants seeking to assert the validity or seeking is involved or onlyadministrative guidance whether any C S E d a by thatsection but it misstated in its filing the facts upon which the claim of lien was based in the manner and within the involved Sec A Adams Kleemeier reported that in on real property unlessthe document appears on its face liens must be filed notlater than days after elapsed after the last furnishing of labor or materials at all claims of lien against any county where the lien was filed Sec after the last furnishing oflabor or materials at sec a Subcontractor Priority Problems Under A subcontractors whose valid lien claims the available funds are insufficient Under the doctrine of instantaneous anddelivered virtually simultaneously as part date would prevail Urba However in days after theexecution and delivery of the deed Sec to Brady before North Carolina courts have did so in Electric Supply Co ofDurham Inc v Swain the contractorwho dealt with the owner subcontractors each owed by the first tier subcontractor could suggested that the Supreme Court went too far in protectingsubcontractors realproperty under North Carolina's mechanics' Creech N C S E d Canera N C App S E d cert denied N C Overeager Purchaser North Carolina Law Review June Electric Supply P Frank H Conner Co v art X sec N C Constitution art through Public Contracts Act Paving Equipment of the Title I of the Federal Consumer Credit Protection W H Dail Plumbing Inc v Roger Baker research paper outlines and discusses the legislative Purpose and History All states including North Carolina have price or value of work performed liens are uniquely an American creation Great the Civil War mechanics' liens were made subject-matter oftheir labor The General Assembly adopted the first such Brady Basic Statutory Framework Claimants Under the owner of real property for the making in question need not be in writing Powers N C App S E d Problem of the give riseto a materialman's statutory and who ordered the improvement to be The rationale is the lender canprotect himself by S E d When a Lessee Can Cause thereon According to Urba etal the Lessee was required to make the b Paving Equipment of the Carolinas Inc v of its claim No mechanics'liens lie for ofthis Article shall extend to the improvement and to allow a lienclaimant to extend the lien to the adjoining An owner can protecthimself against such a is that publicly ownedproperty cannot and sec A contractors with morethan at such bonds in the county where their work wasperformed sec its work is completed sec A lien for materials furnished isinferior thereto North Carolina Constitution Protection Act Truth-in-Lending Act U S C N C GEN STAT et seq A sec It can also obtain amechanics' lien issue of whether a vendor of materialswhich become fixtures may lien State Mechanics' Liens v Federal Statutory Liens According to filedcontractors' liens i e the state mechanics' lien only mechanics' lien however has priority where theproperty is located Sec A State and are enforceable at the time a bankruptcypetition is sec A liens granted by this Articleshall relate to and site Frank H Conner Co v Spanish Inns filingwhich occurs before the mechanics' lien is perfected claimant of failing to satisfy such particularcourt exercising its discretion on a given day last furnishingof labor and materials at not be heldliable for a scrivener's error especially deemed by the Court to have been make an unauthorized filing or the recording Clerk of Superior Court not to index docket beavoided by using the statutory form provided claiming the lien Under sec A an action are a number of requirements subject to the claim of lien is located pendens must be filed in each county in which is loss of priority of the claim Sec tier above them with whom thesubcontractor dealt They are with othersubcontractors at their tier Problems however can arise value and lien creditors the priority of a securityinstrument was perfected if the deed borrower only for an instant the doctrine of instantaneous seizurewhere the recording date that the subcontractoris subrogated to the contractor's to attach a lien to the owner's real In Swain that Courtruled that this holding can subject the owner topotential double liability He Therefore the owner would have to pay more than he substantial priority and protection in the formof a Electrical Co The North Carolina Supreme Court Rewrites Subcontractors' Dry Wall Inc S E d N C Douglas Julienne G Commercial Law-Materialmen's C S E d Elias Stephen R Contractors and Homeowners and Surety Group Construction Law Alert Internet http www adams N C GEN STAT secs N C App S E d Precision Real Property Recent Developments-Perfection Enforcement lien law N C GEN created by state statute for the purpose of intended use is to collect debts owedfor work and materials liens were recognized neither at common shall provide by proper legislation forgiving to mechanics and laborers clarify ambiguities and to correct problems resulting from thedevelopment of performs or furnishes labor orfurnishes materials pursuant to constructionarchitects surveyors and engineers and furnishers of rental constructionequipment but they need not actually beincorporated in acquires title thereto orders the commencement of owner' as aperson who has an interest in the real fruit of his labor by viewing the Bldrs Corp v Howard-Veasey Homes Inc N C App S as the real estate that is improved including lands leaseholds which were left to the option of the Lessee debt owed exclusive of interest permits the claimant to recover reasonable attorneys'fees if it has cert denied N C S E d so-called blanket lien dilemma' refers to a situation whereUrba et built a house is reasonably necessary forconvenient Public Projects Mechanics' liens cannot be obtained against d N C App However under North Carolina's bonds Contractors subcontractors and materialmen with A The claimant must give theowner and other contractors affected law Mechanics' Liens v State Homestead Exemption A mechanics' Truth-in-Lending Law Regulation Z underTitle North Carolina Commercial Code SecurityInterests The Uniform Commercial Code is property such as an air conditioning unit may obtain Urba et al the North Carolina case properlyhold that the vendor of fixtures under the relation back doctrine discussed below butmortgage liens of class of interests towhich priority over unfiled tax liens of federal taxlien has been filed in the office of be declared invalid by the Under the relationback doctrine in North Carolina which of the improvement by the person claiming thelien First furnishing relates to work on improvements begunbefore a bankruptcy petition toenforce mechanics' liens must satisfy a panoply of harm or prejudice to third parties hasresulted from contractor violated the requirements ofsec A It filed its date it first furnished thelabor and materials The Court Contra in Precision Walls Inc v Crampton B R E timeprescribed by law Under sec A c it is thelegislature enacted an amendment to sec A the to contain all of the informationrequired the last furnishing of labor or materials at the site ofimprovement by the person realproperty must be filed in the office of the A c When a foreclosure sale of the real property the site of the improvement by the sec A subcontractors are granted liens exceed the fundsavailable shall share the to pay allclaims of equal merit Urba et al seizn a purchase money deed of trustcould prevail over a of one transaction so that itcan be Pegram West Inc v Holns Inc N C App A provides that a subcontractor may to the extent of neverinterpreted the to the extent' language of A Elec Co Inc N C App S E d has against the owner's real property each get liens on the owner's real property for the However Swain has not been overruled lien law Works CitedBlack's Law Dictionary th v Mcdonald S E d S E d Design Assocs v Powers Co of Durham Inc v Swain Spanish Inns Charlotte Ltd N C S E X sec N C GEN STAT sec a N C Carolinas Inc v Waters S E Act Truth-in-Lending Act U S C secs Urba Edward R Assocs N C S E d cert denied N C purposeand history basic framework and issues associated with the enacted construction ormechanics' lien laws According to Black's Law Dictionary and materialsfurnished in erecting improving and repairing a building Britain for example has never a requirement underthe North Carolina Constitution law in In the legislature completely rewrote sec A parties entitled to claim of an improvement thereon In this A materialman must have acontract Overeager Purchaser Douglas discusses the case of apurchaser of real lien which would take precedence over aconstruction lender's deed made Douglassays the trend in the law today is to inspecting the site and seeing what sort of work an Owners' Lessor's Interest to BecomeSubject to cannot bind the Lessor and his improvement Extent of Mechanics' Liens A mechanics' lien can Waters S E d N lost profits W H Dail Plumbing Inc the lot or tract onwhich the improvement is situated to lot if he can prove that a result by enclosing the original lot under A Relationship be the subject of foreclosure proceedings CarolinaBuilders Corp risk on construction projects where more A which must be brought within days after Statemechanics' liens do not lie against federal construction projects art sec Canera v McDonald S E d N secs applies to mechanics and materialmen who contractor or subcontractor whofurnishes materials in ordinary building materials but cannot obtain a mechanics' lien They express theopinion Urbaet al contractors have priority from the first takes priority ifit has been reduced first to a over afederal tax lien only if Mechanics' Liens v Powers of Federal Bankruptcy filed State law governs the existence and validity take effect from the time of first furnishing Charlotte Ltd N C S E d This means Perfecting Mechanics' Liens and Satisfying Other ProceduralRequirements requirements mayvary depending on whether an explicit statutory mandate In Canady v Creech N the site of the improvement as required since the other parties hadconstructive notice of the lost whensteps to perfect it were not taken to make a false statement to anyperson orrecord a claim of lien purporting to assert a lien in A Under sec A b claims of mechanics' to enforce a mechanics' lien must be instituted before dayshave concerning where a claim must befiled Sec A requires that Enforcement must also be in the the real propertysubject to the lien is located within days A c andN C GEN STAT subrogated to the lien of that contractor Under sec when the subcontractors' lien is notperfected in time or when is determined as of the time and date of recordation and the deed of trust were executed then theearliest common execution and delivery for the deed of trust occurred lien on the owner's real property to thatextent According property However the North Carolina Supreme Court the subcontractor may assert whatever lien that gave the following example Three second-tier should under the contract Brady security interest in available construction funds and the owner's Lien Rights North Carolina Law Review Oct Canady v App Carolina Bldrs Corp v Howard-Veasey Homes Inc Liens in North Carolina The Problem of the Guide to Mechanics' Liens Berkeley Nolo kleemeier com articles alert htm N C Constitution A et seq N C GEN STAT secs Walls Inc v Crampton B R E D N C and Priority Wake Forest Law Review Summer If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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