A New Jersey mechanic’s lien form may be filed by contractors and suppliers in order to demand compensation from a homeowner for unpaid labor or materials. Once filed, the lien is attached to the property’s records so potential buyers and financiers will see it as outstanding debt, making it difficult for the owner to sell. The document must be filed with the County Clerk specific to the county in which the project is located.
It should be noted that in New Jersey, residential projects require two (2) additional forms to be filed prior to the mechanic’s lien; a Construction Lien Demand for Arbitration and a Notice of Unpaid Balance and Right to File Lien. These two forms must be filed with the American Arbitration Association (AAC). Once the arbitrator’s determination has been received, and the right to lien has been awarded, the mechanic’s lien may be filed with the county clerk’s offices.
Laws & Requirements
- Laws: Title 2A, Chapter 2A:44A
- Signing Requirements (N.J. Stat. § 2A:44A-8): Claimant and Notary Public
- Where to File: County Clerk’s Office
- Time Limit for Recording Lien (N.J. Stat. § 2A:44A-6(a)(2)):
- Non-residential projects – ninety (90) days
- Residential projects – A Notice of Unpaid Balance and Right to File Lien must be filed within sixty (60) days of work completion. The mechanic’s lien must then be filed within one hundred and twenty (120) days of completion, but no later than ten (10) days after the claimant receives the arbitrator’s determination.
- Deadline for Enforcing Lien (N.J. Stat. § 2A:44A-24.1(a)): One (1) year
New Jersey Notice of Unpaid Balance and Right to File Lien Template – This document serves as a preliminary notice and must be filed by the claimants working on residential projects prior to the mechanic’s lien.
New Jersey Construction Lien Demand for Arbitration – Claimants working on residential properties must file this form with the American Arbitration Association (AAC), which will then determine if the case is eligible for a mechanic’s lien to be filed.