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What is a
mechanics' lien claim?
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In the state of New
Jersey, liens filed on private property
are known as Mechanics’ Liens. When a
lien is filed with regard to work
performed on privately owned property,
it attaches to and encumbers the fee
simple ownership of property. When a
lien is filed on a public project, the
lien attaches to and secures the funds
in the public owner’s hands, prohibiting
the owner from releasing that money
until the lien is satisfied. |
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Who can file a
Mechanics’ Lien Claim?
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Contractors,
subcontractors, sub-subcontractors,
architects, engineers, and suppliers all
have lien rights under New Jersey’s
Construction Lien Law. |
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Are pre-notices
for a Mechanics’ Lien Claim required?
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Pre-notice
requirements exist for some lien
claimants. Anyone that does not have a
direct contract with the owner should
file a Notice of Delivery of Materials
and Services with the Owner and Prime
Contractor within 20 days of starting
work on the Project |
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When should a Mechanics’ Lien Claim be
filed?
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New Jersey has
different rules for different types of
projects.
Liens filed on commercial projects
must be filed within 90 days after last
day the claimant provided materials or
labor to the Project.
The filing of a Residential Lien
Claim is a two step process.
BOTH STEPS MUST BE COMPLETED WITHIN
90 DAYS. Within 90 days of the last
furnishing of labor or materials, a lien
claimant must file a Notice of Unpaid
Balance along with a demand for
arbitration. This arbitration has
nothing to do with the litigation or
resolution of the lien claimant’s
underlying claim. It is solely for the
purpose of determining whether the lien
claimant has the right to file a lien
claim. At the conclusion of the
arbitration, the lien claimant may file
a Construction Lien Claim for the sum of
money determined by the arbitrator.
Liens on public projects, also
known as municipal mechanics’ liens,
must be filed within 60 days of when the
entire project is completed and accepted
by resolution of the public agency. This
differs from commercial and residential
liens, which have time requirements
starting when the work of the claimant,
not the project, is completed. |
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How much does it
cost to file a Municipal Mechanic’s
Lien?
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LienItNow.com
prepares, files and serves New Jersey
Commercial and Public Mechanics’ Liens
for a fee of $250.00. Liens on
residential property are prepared, filed
and served for a fee of $625.00. |
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Do I need a
written contract?
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Municipal Mechanic’s
Liens doe not require written contracts.
Commercial and Residential Project Liens
can only be filed pursuant to a written
agreement. This includes claims for
change order work. Written agreements do
not necessarily have to take the form of
traditional contracts signed by both
parties. For example, delivery tickets
are sufficient. |
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How does filing a
Municipal Mechanic’s Lien help me get my
money?
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On a private project,
the mechanics’ lien places an
encumbrance on the property that makes
it difficult to resell or re-finance the
property without first removing the
lien. On a public project, the filing of
a lien freezes the fund of money that
has been allocated for the public
project, thus reducing or sometimes even
stopping the flow of payments to the
offending contractor until the lienor is
paid. |
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What is a Stop Notice
and why should it be
filed? |
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LienItNow.com
prepares and serves
New Jersey Stop Notices for
a fee of $100.00.
A Stop Notice is a
notification that has
the ability to enhance
the effectiveness of a
mechanic’s lien. A Stop
Notice, or a notice to
withhold funds, is sent
to the company that is
financing or funding the
construction funds for a
project. Once that
company receives the
Stop Notice, that
company has notice that
it should withhold
sufficient money to
satisfy the stop notice
claim. The purpose of
the Stop Notice is to
provide the lender,
financiers or funders of
the construction project
notice that there is
money owed to a
contractor,
subcontractor or
supplier so that an
inquiry can be made as
to why that money is not
being paid. |
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What is an Amendment to
a Mechanics’ Lien Claim? |
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LienItNow.com
prepares, files and
serves New Jersey
Amendments to Mechanics’ Lien Claims for a fee of $225.00. Amendments to a
mechanics’ lien claim
are often needed when
something about the
lien claim changes. Common
changes to a lien claim
are increases or
reductions in the amount
due to the lienor, or a
change to the last date
of work. |
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When should a Discharge
of Mechanics’ Lien claim
be filed? |
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LienItNow.com
prepares, files and
serves New Jersey
Discharges of Mechanics’
Lien Claims for a fee of
$75.00. Once the lienor
has been paid the amount
contained in its lien
claim, or has come to an
agreement that requires
the lien claim to be
removed from the
property records, a
Discharge of Mechanics’
Lien Claim should be
filed. |
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How much does it cost to
file an Extension of a
Mechanics’ Lien Claim? |
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LienItNow.com
prepares, files and
serves extensions of
Mechanics’ Lien Claims
for a fee of $75.00.
All lien claims expire
after a certain period
of time, and filing an
extension of the
mechanics’ lien claim
prolongs the expiration
date. New Jersey law,
however, does not permit
an extension of
mechanics’ lien claims. |
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Can I file a Bond Claim
on the Project? |
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LienItNow.com
prepares, files and
serves New Jersey Bond Claims for a fee of $250.00. Bond
claims can only be filed
on a project where the
owner, contractor or
subcontractor has
obtained a payment bond
to ensure that every
contractor receives
payment for the work
performed on the
Project. The
payment bonds issued by
sureties for
construction projects
have specific timing
requirements, but most
require claimants to
submit claims against
the bond within sixty to
ninety days from the
claimants’ last date of
work. Bond claims
are
more effective than a
lien claim because the
payment bond acts as a
guarantee that payment
will be made for work
properly completed. |
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Do I need to file a
Pre-Notice to make a
claim against a payment
bond? |
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LienItNow.com
prepares, files and
serves New Jersey
Pre-Notices for bond
claims for a fee of
$50.00. Depending on
the terms of the payment
bond, pre-notices may or
may not be required.
LienItNow.com
recommends that, prior
to or immediately after
starting work or
delivering materials to
a project,
subcontractors and
suppliers, file a
pre-notice that it is a
potential beneficiary of
the construction
project’s bond. |
Click on the appropriate link below to start
the lien filing process in New Jersey.
Lien
(Commercial and Public) |
Lien (Residential) |
Discharge of Lien |
Pre-Lien
Notice| Stop
Notice |
Amendment of Lien |
Bond Claim
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Copyright 2010
LienItNow.com
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Keywords: Lien, Construction Lien Public Construction
Lien, Residential Construction Lien, Commercial Construction
Lien, Residential Construction Lien, Public Construction
Lien, Mechanics Liens |
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