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NORTH CAROLINA CONSTRUCTION LIEN LAW This resea

ude construction 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 site but they need not actually be incorporated 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 commencement 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 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 ordered the improvement to be made." Douglas says "the trend in the law today is to protect the materialman's interest in the fruit 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 work 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).

When a Lessee Can Cause 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." According to Urba et al., the Lessee cannot bind the Lessor and his land as a result of improvements which were left to the option of the Lessee but the Lessor can be bound if the Lessee was required to make the improvement.

Extent of Mechanics' Liens. A mechanics' lien can only be enforced to the ...

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NORTH CAROLINA CONSTRUCTION LIEN LAW This resea. (1969, December 31). In LotsofEssays.com. Retrieved 17:02, May 03, 2024, from https://www.lotsofessays.com/viewpaper/1700514.html