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Can builder charge more cause of his inability to price the build of the house on a “fixed Price” contract

North CarolinaConstruction Contract

In NC - why would a builder state in a “Fixed Price” contract the following: (2) the date on which the owner occupies the house or On the date on which the owner closes on the permanent financing on House. (Upon the making of final payment by owner to Builder), Builder shall deliver to Owner a lien affidavit with respect to all materials and labor furnished in connection with the Construction of the House. ?????? Is this to affirm that all subs and materials have been paid for and no company or sub can place a lien on the house. ( Or ) Is this the document where the builder states that I the owner owe him more money cause he did not figure correctly the cost to build this properly?!?!?

1 reply

May 4, 2022
A lien affidavit waives any claims for future liens on the property-- essentially stating that the contractor and subs have no further right to lien the property because they've been paid in full. If you are a contractor (as I surmise from your name), you sign this only upon final payment to make sure you get paid.
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