Mechanics Lien Release (Recorded Lien Cancellation)

CANCELLATION / RELEASE OF CLAIM OF LIEN ON REAL PROPERTY

(North Carolina)

FILED WITH THE CLERK OF SUPERIOR COURT
[________________________________] County, North Carolina

PART ONE: FULL CANCELLATION OF CLAIM OF LIEN ON REAL PROPERTY

(Pursuant to N.C.G.S. § 44A-7)

1. Original Lien Filing Information

2. Property Information

(If legal description is lengthy, state "See Exhibit A attached hereto and incorporated by reference.")

3. Parties

4. Original Lien Claim Details

5. Cancellation Statement

The undersigned, [________________________________] ("Claimant"), being the party who filed the Claim of Lien on Real Property described above with the Clerk of Superior Court of [________________________________] County, North Carolina, hereby cancels said claim of lien pursuant to N.C.G.S. § 44A-7 and releases, discharges, and relinquishes all right, title, interest, and claim under said lien against the above-described real property and all improvements thereon.

Reason for Cancellation:

☐ Full payment has been received in the amount of $[________________________________], representing complete satisfaction of all sums claimed under the lien.

☐ Settlement and compromise have been reached between the parties, with the Claimant accepting $[________________________________] in full and final satisfaction of all claims.

☐ The underlying claim has been resolved by final judgment entered on [__/__/____] in Case No. [________________________________], [________________________________] County Superior Court.

☐ The Claimant's claim has been satisfied through payment from funds held by the contractor or owner pursuant to N.C.G.S. § 44A-23 (Lien Upon Funds).

☐ Other: [________________________________]

Effective Date of Cancellation: [__/__/____]

The Claimant warrants that no assignment, transfer, or encumbrance of the lien or the underlying claim has been made, and that the Claimant has full authority to execute this cancellation.

The Clerk of Superior Court of [________________________________] County, North Carolina, is hereby authorized and directed to cancel the above-referenced Claim of Lien on Real Property of record.

6. Claimant Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]

By: ______________________________ Its: [________________________________]

7. Notarization

STATE OF NORTH CAROLINA
COUNTY OF [________________________________]

I, [________________________________], a Notary Public of the County and State aforesaid, certify that [________________________________] personally appeared before me this day and acknowledged the due execution of the foregoing instrument.

Witness my hand and official seal, this [____] day of [________________________________], 20[____].

Notary Public: ______________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

(NOTARIAL SEAL)

PART TWO: PARTIAL CANCELLATION OF CLAIM OF LIEN

1. Partial Cancellation Statement

The undersigned, [________________________________] ("Claimant"), being the party who filed the Claim of Lien on Real Property with the Clerk of Superior Court of [________________________________] County, North Carolina, File/Docket No. [________________________________], on [__/__/____], in the original amount of $[________________________________], hereby partially cancels said claim of lien as follows:

Partial Payment Received: $[________________________________]

Remaining Lien Balance: $[________________________________]

Scope of Partial Cancellation:

☐ Reduction in Amount Only. The claim of lien amount is reduced from $[________________________________] to $[________________________________]. The lien continues to encumber all property described in the original claim.

☐ Release of Specific Parcel(s). The following described portion of the property is released from the lien claim, with the claim of lien continuing against all remaining property described in the original filing:

Released Parcel Legal Description: [________________________________]

Released Parcel Address: [________________________________]

Released Parcel PIN: [________________________________]

☐ Combination. Both a reduction in amount and release of specific parcels as described above.

Remaining Lien. The Claimant expressly reserves all rights under the claim of lien as to the unreleased amount of $[________________________________] and any unreleased property. This partial cancellation does not constitute a waiver of any rights, claims, or remedies with respect to the remaining balance.

This partial cancellation is effective as of [__/__/____].

2. Partial Cancellation Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

(Notarization required — use same notarization form as Part One, Section 7.)

PART THREE: DISCHARGE OF CLAIM OF LIEN BY BOND OR DEPOSIT

(Pursuant to N.C.G.S. § 44A-16)

Method A: Discharge by Corporate Surety Bond

NOTICE OF DISCHARGE OF CLAIM OF LIEN BY BOND

To: The Clerk of Superior Court, [________________________________] County, North Carolina

The undersigned hereby deposits with the Clerk of Superior Court a corporate surety bond in the amount of $[________________________________], pursuant to N.C.G.S. § 44A-16, for the discharge of the following Claim(s) of Lien on Real Property:

Bond Information:

Statutory Requirements — N.C.G.S. § 44A-16(a)(3):

☐ The bond is issued by a corporate surety authorized to do business in North Carolina.

☐ The bond amount equals one and one-fourth times (125%) the amount of the claim(s) of lien, i.e., $[________________________________] (125% of $[________________________________]).

☐ The bond is conditioned upon payment of the amount finally determined to be due in satisfaction of said claim(s) of lien on real property.

Request. The undersigned requests that the Clerk of Superior Court cancel the above-referenced Claim(s) of Lien on Real Property of record pursuant to N.C.G.S. § 44A-16(a)(3).

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

Method B: Discharge by Cash Deposit

The undersigned hereby deposits with the Clerk of Superior Court cash in the amount of $[________________________________], equal to one and one-fourth times (125%) the amount of the claim(s) of lien, pursuant to N.C.G.S. § 44A-16(a)(3), for the discharge of the Claim of Lien on Real Property described in Method A above.

The Clerk is requested to cancel the claim(s) of lien of record and hold the deposited funds pending written agreement of the parties or final judgment of a court of competent jurisdiction.

Signature: ______________________________

Date: [__/__/____]

Method C: Discharge by Payment Bond (Developer Projects)

(Pursuant to N.C.G.S. § 44A-16(d))

Where a private developer has posted a payment bond on the project, a claim of lien may be discharged by the developer and surety jointly filing with the Clerk of Superior Court:

☐ A copy of the payment bond; and

☐ An affidavit executed by the surety stating that the amount of the penal sum of the payment bond, minus amounts already paid and minus other claims of lien filed against the property, exceeds the amount of the lien claim being discharged by at least 125%.

IMPORTANT: Where a claimant's lien claim has been discharged under this subsection, the claimant shall have no less than one (1) year from the date of being served with the payment bond and affidavit to file suit on the payment bond. (N.C.G.S. § 44A-16(d))

Release of Bond/Deposit

Pursuant to N.C.G.S. § 44A-16(b), the Clerk may release funds held or a corporate surety bond upon receipt of:

☐ A written agreement of the parties; or

☐ A final judgment of a court of competent jurisdiction.

PART FOUR: DEMAND FOR CANCELLATION OF CLAIM OF LIEN

(Letter from Property Owner to Lien Claimant)

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To:
[________________________________]
[________________________________]
[________________________________]

Re: Demand for Cancellation of Claim of Lien on Real Property
Property: [________________________________]
County: [________________________________], North Carolina
File/Docket No.: [________________________________]
Date Filed: [__/__/____]

Dear [________________________________]:

I am the owner (or authorized representative of the owner) of the above-referenced property. A Claim of Lien on Real Property was filed against this property by you or your company on [__/__/____] with the Clerk of Superior Court of [________________________________] County, North Carolina, as File/Docket No. [________________________________].

I hereby demand that you cancel this claim of lien for the following reason(s):

☐ Full payment has been made. The total amount of $[________________________________] has been paid in full on [__/__/____], satisfying all obligations underlying the lien claim. Proof of payment is attached hereto as Exhibit [____].

☐ The lien is time-barred. Under N.C.G.S. § 44A-12(b), an action to enforce a claim of lien must be commenced within 180 days from the date upon which the claimant last furnished labor or materials at the site. The last furnishing date was [__/__/____], and no enforcement action was commenced within 180 days.

☐ The claim of lien was improperly filed. The claim does not comply with the requirements of N.C.G.S. § 44A-12(a) because: [________________________________]

☐ The claimant lacks lien rights. [________________________________]

☐ Other: [________________________________]

Legal Consequences of Failure to Cancel:

Under North Carolina law, a lien claimant who fails to cancel a satisfied claim of lien may be liable for:

1. Damages sustained by the property owner as a result of the continued lien;
2. Attorney's fees and costs incurred to obtain cancellation;
3. Costs of filing a discharge bond under N.C.G.S. § 44A-16 if necessary to clear title.

Demand. You are hereby demanded to file a cancellation of the Claim of Lien on Real Property with the Clerk of Superior Court of [________________________________] County, North Carolina, within ten (10) days of receipt of this demand. If you fail to cancel the lien within this period, I will pursue all available legal remedies, including but not limited to filing a motion to discharge the lien under N.C.G.S. § 44A-16 and seeking an award of damages and attorney's fees.

Sincerely,

______________________________
[________________________________]
[________________________________]
[________________________________]

PART FIVE: MOTION TO DISCHARGE CLAIM OF LIEN ON REAL PROPERTY

(Filed in North Carolina Superior Court)

Caption

STATE OF NORTH CAROLINA
[________________________________] COUNTY

IN THE GENERAL COURT OF JUSTICE
SUPERIOR COURT DIVISION
File No. [________________________________]

Motion

Petitioner, [________________________________], by and through undersigned counsel, respectfully moves this Court for an order discharging the Claim of Lien on Real Property filed against Petitioner's property, pursuant to N.C.G.S. § 44A-16, and states as follows:

I. PARTIES AND PROPERTY

1. Petitioner is the owner of real property located at [________________________________], in [________________________________] County, North Carolina, more particularly described in the deed recorded in Book [________________________________], Page [________________________________], [________________________________] County Registry.

2. Respondent, [________________________________], is the party that filed a Claim of Lien on Real Property against the Property with the Clerk of Superior Court.

II. THE CLAIM OF LIEN

3. On [__/__/____], Respondent filed a Claim of Lien on Real Property with the Clerk of Superior Court of [________________________________] County, North Carolina, as File/Docket No. [________________________________], in the amount of $[________________________________].

4. The claim of lien alleges amounts due for: [________________________________].

III. GROUNDS FOR DISCHARGE

5. Petitioner is entitled to discharge of the claim of lien on the following grounds:

☐ Full Payment (N.C.G.S. § 44A-7). The indebtedness underlying the claim of lien has been paid and satisfied in full on [__/__/____]. Despite payment, Respondent has failed and refused to cancel the claim of lien.

☐ Expiration of 180-Day Enforcement Period (N.C.G.S. § 44A-12(b)). Respondent failed to commence an action to enforce the claim of lien within 180 days from the date of last furnishing. The last furnishing date was [__/__/____], and the 180-day period expired on [__/__/____]. No enforcement action was filed.

☐ Bond Deposit (N.C.G.S. § 44A-16(a)(3)). Petitioner has deposited a corporate surety bond / cash deposit in the amount of $[________________________________] (125% of the claim) with the Clerk of Superior Court and is entitled to cancellation of the claim of lien of record.

☐ Defective Claim of Lien. The claim of lien fails to comply with the requirements of N.C.G.S. § 44A-12(a) because: [________________________________].

☐ No Lienable Interest. Respondent does not have lien rights under N.C.G.S. Article 2 because: [________________________________].

IV. PRIOR DEMAND

6. On [__/__/____], Petitioner served a written demand upon Respondent via [________________________________] requiring cancellation of the claim of lien. A copy of the demand is attached as Exhibit [____].

7. Respondent has failed to cancel the claim of lien as demanded.

V. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully moves this Court to:

a. Enter an order discharging and cancelling the Claim of Lien on Real Property, File/Docket No. [________________________________], of record;

b. Direct the Clerk of Superior Court of [________________________________] County to cancel the claim of lien;

c. Award Petitioner damages, reasonable attorney's fees, and costs of this action; and

d. Grant such other and further relief as the Court deems just and proper.

This the [____] day of [________________________________], 20[____].

______________________________
[________________________________]
Attorney for Petitioner
[________________________________]
[________________________________]
North Carolina State Bar No. [________________________________]

Verification

STATE OF NORTH CAROLINA
COUNTY OF [________________________________]

I, [________________________________], being first duly sworn, depose and say that I am the Petitioner in the foregoing Motion, that I have read the same, and that the facts stated therein are true and correct to the best of my knowledge, information, and belief.

______________________________
[________________________________]

Sworn to and subscribed before me, this [____] day of [________________________________], 20[____].

Notary Public: ______________________________
My Commission Expires: [__/__/____]

PART SIX: RECORDING AND FILING INSTRUCTIONS

North Carolina Filing Requirements

Clerk of Superior Court — Major North Carolina Counties

Statutory Deadlines and Penalties — North Carolina

Practitioner Notes — North Carolina

1. Claims Filed with Clerk of Superior Court. Unlike most states, North Carolina claims of lien on real property are filed with the Clerk of Superior Court, not the Register of Deeds/County Recorder. Cancellations must also be filed with the Clerk.

2. 180-Day Enforcement Deadline. Under N.C.G.S. § 44A-12(b), the claimant must commence an action to enforce the lien within 180 days from the date of last furnishing. This is one of the shorter enforcement periods nationally. If the deadline passes without action, the claim of lien expires by operation of law.

3. 125% Bond for Discharge. Under N.C.G.S. § 44A-16(a)(3), a corporate surety bond or cash deposit equal to 125% of the lien claim amount may be deposited with the Clerk to obtain cancellation. This is lower than many states (e.g., Montana requires 150%).

4. Payment Bond Discharge for Developer Projects. N.C.G.S. § 44A-16(d) provides a unique mechanism for developers who have posted payment bonds: the developer and surety can jointly file the payment bond and a surety affidavit to discharge the lien, provided the remaining bond amount exceeds 125% of the claim. The discharged claimant then has at least one year to sue on the payment bond.

5. Subrogation Rights. Under N.C.G.S. § 44A-12.1, a party who pays a lien claim is subrogated to the rights of the lien claimant. This is important for owners or general contractors who pay subcontractor liens and then seek reimbursement from the responsible party.

6. Lien Upon Funds (Subcontractor Claims). North Carolina provides a separate "lien upon funds" remedy under N.C.G.S. § 44A-18 to 44A-23 for subcontractors and suppliers. A subcontractor's claim of lien upon funds against contract proceeds owed to the contractor is separate from, and in addition to, the claim of lien on real property.

7. No Separate Demand Statute. North Carolina does not have a specific statutory demand procedure compelling release within a defined number of days. However, making a written demand creates a record supporting a motion to discharge and potential damages claim.

8. Title Insurance. Title companies will require cancellation of the claim of lien before issuing clear title. For urgent closings, the bond discharge procedure under § 44A-16 provides the fastest path to clearing title.

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. All lien cancellations should be reviewed by a licensed North Carolina attorney before filing. North Carolina law may change; verify all statutory citations before use.