We own a mechanic repair shop/towing business. We have several vehicles on our lot that have been here for quite some time. How do we go about filing a lien to make sure we follow all the right steps?
1 reply
Oct 2, 2019
The Levelset Expert Center is focused on construction payment, but I'll try to provide some helpful information below.
Auto liens in North Carolina are set forth by § 44A-2(d), which states: "Any person who repairs, services, tows, or stores motor vehicles in the ordinary course of the person's business pursuant to an express or implied contract with an owner or legal possessor of the motor vehicle, except for a motor vehicle seized pursuant to G.S. 20-28.3, has a lien upon the motor vehicle for reasonable charges for such repairs, servicing, towing, storing, or for the rental of one or more substitute vehicles provided during the repair, servicing, or storage. This lien shall have priority over perfected and unperfected security interests."
If the vehicle(s) remain in the liner's possession, they may be sold to satisfy the debt provided that timing and notice requirements are met in accordance with § 44A-4.