Monday, October 27, 2014

New Jersey Mechanics Lien Requirements

In the state of New Jersey, liens filed on private property are known as mechanics' liens . When a New Jersey mechanics 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 New Jersey mechanics 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 mechanics lien is satisfied.
Contractors, subcontractors, sub-subcontractors, architects, engineers, and suppliers all have lien rights under New Jersey's Construction Lien Law.

Pre-lien 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
New Jersey has different rules for different types of projects.

Construction 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 120 DAYS. Within 60 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.

For more information about New Jersey Liens, please visit LienItNow.

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