By: Natasha Branch
Vice President, Education and Underwriting Counsel for North Carolina, Title Resources Group
Treasurer, North Carolina Land Title Association
Liens and judgments are a routine part of real estate practice. Most attorneys know how they arise, how to identify them in a title search, and how to move a file to closing. Yet lien issues continue to disrupt transactions and, in some cases, become title claims.
In my day-to-day work with closing attorneys and underwriters, one theme comes up consistently. Most lien problems are not caused by a lack of legal knowledge. They happen because facts surface late, assumptions go unchecked, and decisions are made under pressure.
The most challenging files usually involve liens that feel familiar. A contractor was 'paid,' work 'finished months ago,' or a lien waiver looks like one you have seen countless times. Those assumptions are often reasonable. They are also where risk begins.
Even the liens we consider routine still require careful analysis. Ad valorem taxes, HOA liens, judgment liens, and state tax liens are not difficult conceptually, but they are easy to oversimplify. Ownership changes, foreclosure timelines, and enforcement periods can all affect whether a lien remains relevant at closing.
Federal tax liens illustrate this point. These liens attach upon assessment but become effective against real property once a Notice of Federal Tax Lien is filed. Timing, refiling windows, and ownership structure all matter. A lien against one spouse raises different issues when property is held as tenants by the entirety. An older notice that appears stale may still be enforceable if it has been properly refiled. These nuances frequently affect whether a lien must be paid or released at closing.
Mechanics’, laborers’, and materialmen’s liens present the greatest risk. The issue is not that the statute is unclear. It is how the statute operates in practice. A properly perfected lien relates back to the date of first furnishing rather than the filing date. Strict statutory deadlines govern both filing and enforcement. Those rules create exposure when the facts surrounding construction are incomplete or misunderstood.
The lien agent system was designed to improve transparency, but it has also introduced new challenges. The absence of a filed lien does not necessarily mean the absence of risk. Independent verification of lien agent activity, including review of active or renewed notices, is essential to reduce exposure.
Lien waiver forms are another common source of risk. The NCLTA forms are not interchangeable. Each form reflects a specific set of factual and underwriting assumptions. Using the wrong form does not simply create a technical issue. It can leave unresolved lien rights tied to the property.
Many of the situations discussed during my presentation at the 2026 NCBA Real Property Section Annual Meeting were drawn from real questions that arise shortly before closing. They often begin with a familiar phrase: 'This probably isn’t an issue, but…' These situations rarely have clear, checklist answers. Instead, they require stepping back and asking a few additional questions. Who ordered the work? When was it performed? Has it actually been paid? Does the documentation match the underlying facts?
For attorneys handling these issues in practice, the takeaway is straightforward. Verify lien-related facts independently. Do not rely solely on verbal assurances. Match the lien waiver form to the actual circumstances of the project. Involve underwriting early when facts are incomplete or inconsistent.
Most lien issues are manageable when they are identified early. More difficult situations tend to arise when a file feels routine and no one stops to confirm what is actually happening beneath the surface. In this area of practice, the most valuable skill is not identifying the statute. It is recognizing when something warrants a closer look before moving forward.
