Last month, we gave you some information about the new lien law. At the time of the article, we did not have the new lien forms available to us. Now we do. At the Home Page of our website you will find Forms 5, 6 and 7 along with a copy of the new requirement that begun appearing in our commitments starting on April 1. To access that page, click here.
As to the new forms, this is how it will work. For any transaction that falls under the provisions of the recent amendments to the Lien Law, (remember that the trigger is new construction in excess of $30,000.00) the owner will be required to execute Form 5. Additionally, you will need to get Form 6 or Form 7 executed by the appropriate parties. Those parties will be the Owner and any Potential Lien Claimants who have filed notices on the website (www.liensnc.com). Form 6 is akin to Form 2 in that it is a waiver of rights. Form 7 is like Form 3 in that it is a subordination of rights.
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