NOTICE
Residential and Commercial Building Permitting Update
Starting April 1st we will be implementing a Mechanic’s Lien Law policy with the passing of Senate Bill 42 (session
law 2012-158). This law has a direct impact on Commercial and Residential building projects that have a total cost of
construction of $30,000.00 or greater.
There is one exception to the law. An owner of a single family residence can build an addition to his own single family residence. This exception is related to G.S 87-15.5 (7).
What steps do I need to take to meet compliance?
Select a Lien Agent for your project. You should visit the Department of Insurance web site to obtain information on
approved designated lien agents.
http://www.ncdoi.com/PC/PC_Title_Lien_Agents.aspx
When I have selected a Lien Agent for my project what next?
Once you have determined your designated lien agent, we will require that
information be listed on the building permit application. For permits being
complete online, there are required fields that will ask for this information.
Permits completed on the paper forms do not have a required field , however
the information will need to be provided in the general note areas which is
located at the bottom of the application.
This information has three parts that are critical in order to to meet compliance of law. They are as follows.
1. Name of the title insurance company to act as lien agent pursuant to G.S 44A-11.1.
2. Physical and Mailing address, facsimile number and electronic mail address to which notices may be
delivered to the lien agent pursuant of G.S 44A-11.2.
3. Telephone number of the lien agent.
Note: We will accept a letter on your company letter head with that following information in lieu of it
being placed on the paper permit application.
Once the building permit is issued, this information will also have to be posted on the construction site with the permit
placard.
If you change your lien agent after the building permit been issued these changes must be relayed to this department
so necessary changes can be made to the permit application. An additional charge will be applied to complete the
transaction.
What permitting processes will be affected with this new Lien Law?
Currently, the department is working to make this a seamless process and be totally electronic by the customer. With
the short notice, all process will have additional steps to help verify compliance of this law. We are working diligently to make the necessary enhancement to our currently technology.
Are you seeking additional information regarding the Mechanic’s Lien Law?
Customers seeking information on the requirements of the Mechanic’s Lien Law should
contact their own legal counsel or their local trade groups.
March 7, 2013
Rev. 5.13.13