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Its a powerful tool that a contractor can use to secure their payment on a project where they have performed work that improved property value but have not received payment. Think of it as a security interest or collateral on the property, making it difficult to sell or transfer ownership until the lien is lifted.
Who can file a mechanics lien in New Jersey?
If contractors and suppliers dont get paid on a construction project in New Jersey, they can file a mechanics lien to secure payment. A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property.
How long does a contractor have to file a lien in NJ?
A construction lien must be filed within 90 days from the date the last work was performed, or from the last date on which materials, services or equipment was provided. The construction lien must be filed with the county clerk for the county in which the property to be subject to the lien is located.
What is the difference between a lien and a mechanics lien?
Mechanics liens differ from other types of liens in several ways. Traditional liens such as mortgage liens or tax liens are typically placed on real property by lenders or government entities. Mechanics liens are more specific to construction.
How do I remove a construction lien in NJ?
Discharge by Bond construction lien has not been paid off or satisfied, the lien can be discharged by the filing of a bond with the county clerk. surety bond in favor of the claimant in an amount equal to 110% of the amount of the lien claim, the lien is effectively bonded off of the property.
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Construction liens are a powerful tool for construction contractors, subcontractors and suppliers to compel payment for work which they have performed.
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62-214 (1939) ; N.J. STAT. ANN. 2A:44-97 (1953) ;. N.Y. LIEN LAW 41. In New Jersey, however, the owner may cut off the right of lien as against
How do I file a contractor (or mechanic) lien? The Judiciary does not have any forms for these liens on its website. The procedure is set forth in N.J.S.A. 2A
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