Frequently Asked Questions - New Jersey Mechanics Lien
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What is a New Jersey mechanics' lien claim?
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.
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Who can file a New Jersey mechanics' lien Claim?
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-lien notices for a New Jersey mechanics' lien Claim required?
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
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When should a New Jersey mechanics' lien Claim be filed?
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.
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How much does it cost to file a New Jersey mechanic's Lien?
LienItNow.com prepares, files and serves New Jersey Commercial and Public mechanics' liens for a fee of $290.00. Liens on residential property are prepared, filed and served for a fee of $850.00.
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Do I need a written contract in order to file a New Jersey mechanics lien?
In New Jersey, liens on public projects do 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. In New Jersey, a writing evidencing the existence of an agreement is sufficient to allow the filing of a New Jersey mechanics lien claim.
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How does filing a New Jersey Mechanic's Lien help me get my money?
On a private project, the New Jersey mechanics' lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the construction lien. On a public project, the filing of a New Jersey mechanics 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 New Jersey Stop Notice and why should it be filed
LienItNow.com prepares and serves New Jersey Stop Notices for a fee of $125.00. 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 a New Jersey Amendment to a mechanics' lien Claim?
LienItNow.com prepares, files and serves New Jersey Amendments to mechanics' lien Claims for a fee of $275.00. 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 New Jersey Discharge of mechanics' lien claim be filed?
LienItNow.com prepares, files and serves New Jersey Discharges of mechanics' lien Claims for a fee of $85.00. 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 a New Jersey Extension of a mechanics' lien Claim?
LienItNow.com prepares, files and serves extensions of mechanics' lien Claims for a fee of $85.00. 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 a New Jersey Project?
LienItNow.com prepares, files and serves New Jersey Bond Claims for a fee of $275.00. 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 New Jersey payment bond?
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.
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