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Regarding lien waivers in North Carolina. Can a GC or Subcontractors sign a conditional lien waiver or only allowed to sign an Unconditional Lien Waiver for progress payments and final payments.

1 month ago

We are a developer in Dallas, Tx and doing a project in NC. The GC is telling me that they do not have to sign waivers, however, our Lender here in Dallas will at least require an unconditional wavier to each GC and Subcontractor. Are we allow to collect them?

Chief Legal Officer Levelset

North Carolina does not regulate lien waiver forms, therefore, any lien waiver form can be used. This applies to the form and wording of the lien waiver itself, and to the “type” of lien waiver (conditional or unconditional).

North Carolina does, however, prohibit lien waivers to be given or required “in anticipation of and in consideration for the awarding of any contract” in § 44-A12.

The use of waivers other than those disallowed prior to the awarding of a contract is governed by the relationship between the parties. Obtaining a waiver in consideration of payment is relatively standard, and there is no legal prohibition against collecting them.

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