Liens

A lien is a legal claim, enacted and defined by statute, of a creditor upon the real or personal property of a debtor to secure the payment of a debt or for the satisfaction of an obligation. North Carolina recognizes the following liens:

Statutory Liens on Personal Property

There are a multitude of liens that may be placed on personal property. Liens on personal property differ in some respects from other liens, in that the person asserting the lien (the lien or) has to have possession of the property. As with other liens the statute determines who and under what circumstances a lien on personal property can be obtained. The following is list of a few liens that are available on personal property and who can claim the liens:

  • General Service and Storage Lien:
    A lien that can be claimed by anyone who tows, repairs, stores, improves, or services personal property (not vehicle);
  • Innkeeper’s Lien:
    A lien that can be claimed by operators of boarding houses, hotels, and motels;
  • Motor Vehicle Lien (sometimes referred to as a Mechanic Lien):
    A lien that can be claimed by someone who repairs, services, stores, or tows automobiles;
  • Landlord’s lien:
    A lien that can be claimed by a person that the leases any residential or commercial building.

Other liens that fall into this category are textile liens, animal boarder’s lien, and mold liens. Statutory liens on personal property have specific requirements that have to be followed which are not supplied in the list above.

Statutory Liens on Real Property

Statutory Liens on real property are available and can be claimed by anyone who has contracted with the owner of the realty and provides rental equipment, labor, and materials to repair or improve the real property. The lien takes effect upon the date that services or materials are provided and attaches to the property at issue. A lien on real property must be perfected by filing a claim of the lien in the office of the clerk of court in the county in which the property sits; and must include:

  • Name and address of the owner of the property
  • Description of the property
  • Description of services performed or goods delivered
  • Date of commencement and completion
  • Be filed not later than 120 days after the last day that services were rendered or goods were furnished;
  • Be enforced, by the commencement of an action within 180 days of the last day that services were rendered or goods were furnished.

This is a simple overview of what is required to claim a statutory lien on real property and is not all inclusive.

Judgment Liens

A judgment lien differs from a statutory lien on real or personal property in that it is created when a person secures a judgment against a debtor for money or property and the entry of the judgment is entered on the judgment docket. The judgment lien attaches to all real property owned by the debtor, with some exceptions, but not personal property. The lien will last for ten years and extends to after-acquired property.

Attachment Liens

An attachment lien may be granted during a lawsuit to secure property or other assets for a possible judgment if there is a risk that a party to the lawsuit will:

  • Fraudulently conceal or dispose of the assets or property with the intent to defraud creditors;
  • Abscond (leave) from the state with the intent to defraud creditors; or
  • A non-resident; or
  • A foreign corporation or a domestic corporation that is unable to be located.

The party requesting an attachment must post a bond determined by the court but not less than $200. The lien attached when levy process ends and does not end until the termination of the lawsuit or is sold to satisfy the judgment. The sheriff is responsible for placing levies on all real property and personal property for attachment purposes.

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Areas We Serve

The attorneys of Hopper Law Firm have practiced law predominantly in Raleigh, North Carolina (Wake County) and the greater Triangle area since 1994. However, depending upon the nature of the case, we often serve clients in the surrounding counties, including: Durham, Chatham, Orange, Johnston, Franklin, Harnett, Guilford, and Cumberland.