A lien waiver is a document drafted by a potential lien claimant such as a contractor, subcontractor, materials provider, equipment lessor or other party to the construction project (the claimant) that states they have received payment and thereby waive any future lien rights to the owner's property. Simply put, waiving a lien means giving up the right to a future lien in exchange for the payment of the potential lien amount in full or part.

Lien waivers generally fall into two categories: conditional and unconditional. A conditional waiver is effective only upon the triggering of a specific event, such as the payment check clearing. An unconditional waiver is an absolute abandonment of the claimant's right to a future lien whether or not payment is ever made to the possible claimant. North Carolina does not provide for lien waivers by statute, although waivers are still permissible and will be recognized by a state court under the principles of contract law.

An unconditional final waiver upon final payment is the safest waiver for owners because it releases all the claimant's rights to place a mechanics lien on the owner's property, regardless of whether or not the payment check has been returned or a stop payment order was issued. Claimants should issue this type of release only when they are positive their work is done and the payment has cleared their bank. Owners should demand this release when they have paid in full.

By filing the form, the lien claimant represents that he or she either has already paid or will use the money he or she receives from this final payment in order to make prompt payment in full to all his or her laborers, subcontractors, materialmen and suppliers for all work, materials or equipment that are the subject of this waiver and release.

Getting a lien waiver also allows property owners to shield the title to their property from the general contractor, material suppliers, and subcontractors involved with the project. With a lien release upon a final payment, the property owner once again regains clear title and the ability to obtain financing or sell the property.

The property owner should require lien and labor waivers to be submitted with the contractor's invoices and should not authorize payment of any invoice without properly signed lien and labor waivers. Proper lien waivers can protect the property owner from liens filed by the contractor's subcontractors, suppliers and laborers who might record a lien if they are not paid by the contractor.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice of a legal professional. Please contact an attorney with questions about using lien waivers, or for any other issues related to liens in North Carolina.

How to Use This Form

Select your county from the list above
Download the county-specific form
Fill in the required information
Have the document notarized if required
Record with your county recorder's office

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Common Uses for Unconditional Waiver on Final Payment

Document consent of the property owner for improvements
Protect a supplier's right to payment for delivered materials
File a lien to prevent property sale until payment is received
Protect a contractor's right to payment for work performed
Document a change order that affects the scope of a project
Document a lien waiver upon receipt of progress payment
File a lien for unpaid construction or renovation work

Compare other North Carolina deed forms and documents

Quitclaim Deed Gift Deed Warranty Deed Special Warranty Deed Grant Deed Correction Deed Beneficiary and Executor Deed Executor Deed Beneficiary and Administrator Deed Durable Power of Attorney Limited Power Of Attorney For Real Property Easement Deed Termination of Easement Mineral Deed Quitclaim Mineral Deed Notice to Lien Agent Notice of Contract Notice of Subcontract Claim of Mechanics Lien Claim of Lien Against Construction Funds Conditional Lien Waiver on Progress Payment Unconditional Waiver on Progress Payment Conditional Waiver on Final Payment Disclaimer of Interest Contract for Deed Memorandum of a Contract for Deed Release of a Memorandum of a Contract for Deed Deed of Trust Assignment of Deed of Trust Release Deed for Deed of Trust Deed of Partial Release Appointment of Substitute Trustee Certificate of Trust Notice of Lis Pendens Cancellation of Lis Pendens Notice

Important: County-Specific Forms

Our unconditional waiver on final payment forms are specifically formatted for each county in North Carolina.

After selecting your county, you'll receive forms that meet all local recording requirements, ensuring your documents will be accepted without delays or rejection fees.

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