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Can I put a lien on my client’s property without a written contract?

By: Bill Wortman

 

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I own a landscaping business in North Carolina. I have been trying to collect on an account that is several months past due. There is not a written contract with the client; it was a verbal contract. The client has acknowledged owing the money thru emails. Would it be possible to put a lien on the client’s property without a written contract?

 
Answer:
Filing a Lien Without Written Contract: Due to the specific requirements and general complexities with mechanics lien laws, it would appear that you will need to consult your business lawyer to determine if a mechanics lien is available for the specific landscaping work performed and for assistance with a lien filing. You can review the following North Carolina lien law information, which states that liens apply to agreements that are either expressed (written or verbal) or implied:

“Who can file a lien in this State?

Any person who performs or furnishes labor or professional design or surveying services or furnishes materials or furnishes rental equipment pursuant to a contract, either express or implied, with the owner of real property for the making of an improvement thereon shall, upon complying with the provisions of this Article, have a lien on such real property to secure payment of all debts owing for labor done or professional design or surveying services or material furnished or equipment rented pursuant to such contract.

How long does a party have to file a lien?

Claims of lien may be filed at any time after the maturity of the obligation secured thereby but not later than 120 days after the last furnishing of labor or materials at the site of the improvement by the person claiming the lien.”

Published: January 7, 2014
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Bill Wortman

As the Chief Business Consultant at BizCoachingOnDemand.com, Bill has over 40 years of business experience. He's held multiple executive-level positions and fulfilled the role of CFO at large, publicly-held (NYSE, NASDAQA, and AMEX) corporations. In addition, he's also been an owner of several successful private ventures in real estate and in the automotive industry.

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