Are subcontractors entitled to a lien in North Carolina?
As with general contractors, North Carolina General Statutes Chapter 44A likewise provides subcontractors (a party who contracts with one other than the owner) with lien rights in addition to their traditional breach of contract remedies. Specifically, Chapter 44A provides two distinct lien rights to subcontractors: (1) a traditional lien on the real property improved; and (2) a lien on funds. As for the traditional lien, the subcontractor’s lien is similar to the general contractor’s lien in that it attaches to the real property of the owner. However, under Chapter 44A subcontractors are only entitled to a “lien by subrogation.” That is, the subcontractor is only entitled to enforce the lien available to the general contractor, and so its lien is limited to the amount owed to the general contractor by the owner at the time the lien is filed. Further, the lien rights of a subcontractor can be cut off by payment to the general contractor. As with the lien available to general contractor