North Carolina Lien Waiver Rules
- Rules At A Glance
- Top Links
No Specific Form
North Carolina does not require any specific lien waiver form. Any form may be used.
Notarization Not Required
North Carolina lien waivers do not need to be notarized to be effective.
Cannot Waive Rights in Contract
In North Carolina, a lien waiver cannot be “in anticipation of and in consideration for the awarding of a contract.”
Can Waive Rights Before Payment
North Carolina allows lien waivers prior to payment as long as they were not given in order to be awarded the contract.
Lien waivers are pretty complex documents. But they are also unassuming because of how frequently they get exchanged on construction jobs across the country, and in North Carolina. A lien waiver is basically a receipt that payment has been made for work or materials on a job. These documents are exchanged at the time of payment, and commonly attached to subcontractor pay applications or vendor invoices.
There are different types of lien releases for different types of situations. And these documents have significant consequences for everyone on a job — as it connects directly to everyone’s right to cash! Also, one pesky aspect of lien waivers is that the process of sending, requesting, tracking, and collecting lien waivers is an administrative pain that slows down the payment on a project.
Knowing everything you can about lien waivers will allow you to make your process faster. And if your process is faster, your cash will move faster; and that’s good news for everyone on the project!
- For more on lien waivers in general, see: The Ultimate Guide to Lien Waivers in Construction
North Carolina lien waiver laws
North Carolina lien waivers are mostly unregulated, at least in terms of the form or specific language necessary to make the waiver effective. However, there are rules related to when a lien waiver can be given and be effective. North Carolina does not provide lien waiver form templates in its statutes, and doesn’t really provide much guidance on how a lien waiver should be drafted. Participants on a North Carolina construction project, therefore, have quite a bit of freedom to choose the exact format and language of lien waivers.
There are limitations related to when lien waivers can be requested and provided, however. Lien rights are a policy right of contractors and suppliers, so many states have protections in place to make sure those rights aren’t unfairly side-stepped. In North Carolina, these protections make it so that lien waivers “in anticipation or in consideration for awarding the contract to perform work” are completely disallowed.
In North Carolina, like everywhere, construction participants should pay careful attention to lien waivers. They are exchanged all the time, but they can have serious consequences. The resources, forms, guides, and frequently asked questions about North Carolina Lien Waivers on this page will help you get it right.