North Carolina Lien Waivers Guide and FAQs

No, North Carolina does not require or provide statutory forms for lien waivers. Because the form and content of lien waivers aren’t regulated under North Carolina Mechanics Lien laws, careful attention should be given to the actual terms of the waiver to ensure you’re not waiving more than intended.

• See: Should You Sign That Lien Waiver?

In order for a North Carolina lien waiver to be valid and enforceable, it must be done by express agreement clearly stating an intent to waive lien rights.

Lien waivers will fall under two main categories: progress payments or final payments. Progress waivers will be structured either as an “amount paid” waiver which states the amount of payment made in exchange for the waiver, or a “to-date” waiver which waives lien rights for the value of all labor/materials provided up to the “through date” provided on the waiver. A final payment waiver will waive all lien rights associated with the project.

Note: Any false statements made regarding sums due or claimed are not only a Class 1 misdemeanor, but can also subject the claimant to licensing penalties

No, unconditional lien waivers are not prohibited by statute or case law, as long as the waivers is by express agreement. However, if you have yet to receive payment, a conditional waiver is always the safer option.

• See: Conditional v. Unconditional Lien Waivers, What’s the Difference?

Yes, waivers prior to performance (so called “no lien clauses“) are prohibited under NC Gen. Stat. §44A-12(f), “an agreement to waive the right to file a claim of lien on real property… or an agreement to waive the right to serve a notice of claim of lien on funds… which agreement is made in anticipation of and in consideration for the awarding of any contract… for the making of an improvement upon real property… is against public policy and is unenforceable.” There are no restrictions on waivers prior to payment.

An important thing to note, a claimant may agree to subordinate their lien rights to the owner or the owner’s lender; which could essentially act as a waiver in terms of lien priority.

• See: We received a subordination of lien form, is there any reason not to sign it?

Under NC Gen. Stat. §44A-23(c) a subcontractor’s right to to a lien through subrogation is waived if the contractor signs a lien waiver before the subcontractor has perfected their lien on the property. However, a subcontractor’s right to claim a lien on funds of a lien on real property due to wrongful payment will not be affected.

No. North Carolina does not require mechanics lien waivers to be notarized in order to be effective.