Selling a House With a Contractor’s (Mechanic’s) Lien in NC
A contractor put a lien on your house — here is how it works and how it clears.
A renovation that went sideways, a dispute over a final invoice, a subcontractor you did not even hire directly — and now there is a contractor's lien on your house. In North Carolina this is a “claim of lien on real property,” and while it is a real cloud on your title, it runs on strict deadlines and is routinely cleared at closing. Here is how the mechanic's lien works and how a sale resolves it.
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How a Contractor Files a Lien — the 120-Day Rule
A contractor, subcontractor, or supplier who improved your property and was not paid can file a Claim of Lien on Real Property with the clerk of superior court. Under G.S. 44A-12, the claim must be filed no later than 120 days after the last date they furnished labor or materials at the site. Once it is filed and indexed against your property, it is a cloud on the title that has to be resolved before clear title can pass to a buyer.
The Deadlines That Decide a Mechanic's Lien
Filing a claim is only the first step. To actually enforce the lien, the claimant must file a lawsuit within 180 days of the last furnishing of labor or materials, under G.S. 44A-13. If they miss that deadline, the lien is no longer enforceable.
Priority matters too: under G.S. 44A-10 a perfected claim of lien relates back to the date the contractor first furnished labor or materials at the site, which can place it ahead of a later mortgage. Because priority is fact-specific, the closing attorney works out the order of payment when more than one claim exists.
How the Lien Is Cleared When You Sell
A valid claim of lien is paid from your sale proceeds at closing, and the closing attorney records the cancellation so clear title passes to the buyer. If a lien is disputed, or if the claimant let the 180-day enforcement deadline pass, the attorney addresses it as part of clearing title rather than simply paying it. Because Freedom Legacy Homes buys as-is for cash with no lender, there is no financing contingency to derail the sale — we work the payoff or release into the closing and move on your timeline.
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A contractor's lien does not have to freeze your sale. Tell us the address and what the title search showed — we will make a written, as-is cash offer and work with the closing attorney to pay or clear the lien at closing. No repairs, no commissions, no money up front.
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