North Carolina Gives Lien Rights to Commercial Real Estate Brokers

By: Gregory L. Shelton

Shelton Law Carolinas

After several years of trying, real estate brokers were given lien rights by the North Carolina General Assembly.  House Bill 174 amends Chapter 44A (the mechanic’s lien law) by adding a Part 4 that gives brokers a lien on commercial real estate to secure commissions.

In the past, contractors and suppliers  expressed concern over the addition of another class of lien claimants, noting that brokers do not furnish labor or materials for the improvement of property. New section 44A-24.14 addresses this concern by providing that the traditional mechanic’s liens “shall be deemed superior in all respects to any lien asserted” under new Part 4.

To enforce their new lien rights, commercial real estate brokers must comply with the statutory requirements, which include having a written contract; serving notice upon the commercial property owner in the manner set forth in the statute; and filing a lawsuit to enforce the lien within 30 days after service of the notice upon the owner.

The new law becomes effective on October 1, 2011 and applies to written agreements signed by or on behalf of the owner after that date.

About Gregory L. Shelton

Gregory L. Shelton is licensed to practice in North Carolina, South Carolina, and Florida. He is a South Carolina circuit court mediator and North Carolina superior court mediator. Greg is the Managing Editor of the North Carolina Construction Law Deskbook, the definitive treatise on construction law in the state. He is also Florida board certified as a construction law specialist. He practices at Shelton Law Carolinas. SC: (803) 670-0024 NC: (704) 940-9012
NC Law

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