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!
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.
@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.