Mecklenburg County Implements Mechanic’s Lien Agent Policy Starting April 1


Starting April 1st, Mecklenburg County Code Enforcement will require all commercial and residential permit applications valued at $30,000 or more to designate a title company to act as a Lien Agent for that project, in compliance with Senate Bill 42, which Governor Perdue signed last July.  The only exception to the law is for the owner of a single family home who is building an addition to his own home.

What steps do I need to take to meet compliance?Select a registered Lien Agent for your project. You should visit the Department of Insurance website to obtain information on approved designated lien agents.

At the present time, no registered agents are listed on the DOI website, but we are working with Mecklenburg County to determine how they will deal with this. In the meantime, we encourage you to contact your title insurance company to ensure that they are planning to register as a lien agent in North Carolina

When I have selected a Lien Agent for my project, what next?Once you have determined your designated lien agent, the county will require that information to be listed on the building permit application. For permits being completed online, there are required fields that will ask for this information. If you are making a paper submission, please provide this information 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:1. Name of the title insurance company to act as lien agent.2. Physical and Mailing address, facsimile number and electronic mail address to which notices may be delivered to the lien agent.3. Telephone number of the lien agent.

Note: The county will accept a letter on your company letter head with that 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 the Code Enforcement 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, Code Enforcement 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.

How do I get more information about the Mechanic’s Lien Law?You can contact Bryan Heckle at Property and Casualty Division of the Department of Insurance at (919) 733-3366 or email at P&[email protected].

BACK TO LATEST NEWS
Let’s Combine Your Purpose with REBIC’s Power.
Sign Up to Join Our Email List:
Name