Lien Waiver for contractor

2 Replies

HI BP!

I am trying to get a better understanding of lien waivers and how they work. I get the overall concept but recently we learned that the state of North Carolina changed things and now requires a lien waiver agent? Is anyone familiar with lien waiver agents?

We are working with a private "lender" who wants lien waivers for draws on a construction loan.

Not a very exciting topic ...but please do share any advice...thank you!

Allison

Hey Allison,

I'm a GC in New Bern, NC and familiar with lien waivers. The state has actually made it pretty easy on us general contractors. Here's a link to LiensNC.

www.liensnc.com

 All you need to do is go to this site and register. Then elect a "lien agent" from a list of NC approved agents. The cost to you is, I think, $25. You'll then need to input your project details. At the end of the process you'll be able to print out a form with a QR code. This must be posted at your job site.  You can monitor any lien activity by logging in to check your account. We no longer have to track down every single sub that has worked on a project and have him sign a lien waiver. They go through the web site to file. Hope this helps.

Charles

@Allison Ezzi  Note that a lien waiver agent is only required for improvements over $30,000.  Also, you can download a sample form by just searching Google for Lien Waiver.  Lastly, you can also use what is called NC Form No. 2 which is a OWNER/CONTRACTOR AFFIDAVIT, WAIVER OF LIENS AND INDEMNITY AGREEMENT.  I have had lenders and closing attorneys (upon sale) accept this form.  Page 3 of the form is where you fill in the contractors name, trade, and then there is a line for them to sign.  This will not work as a partial lien waiver, it only works as a final lien waiver.  

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