5 Steps to Filing a Mechanics Lien in New Jersey: Your Ultimate Guide
Introduction
Mechanics liens are legal claims filed contractors, subcontractors, and suppliers against property owners who fail to pay for construction work done. Filing a mechanics lien is a powerful tool for contractors to ensure payment for their work. In New Jersey, mechanics liens are governed specific laws and procedures that must be followed for the lien to be valid. In this article, we’ll guide you through the five essential steps for filing a mechanics lien in New Jersey.
Step 1: Understand the Basics of New Jersey Mechanics Liens
Mechanics liens are legal claims against a property filed contractors, subcontractors or suppliers who have not been paid for their work. In New Jersey, the mechanics lien law is governed the Construction Lien Law (N.J.S.A. 2A:44A-1 et seq.). According to the law, mechanics liens can be filed any person who, with the consent of the owner, has performed services, furnished materials, or made any improvement to the property.
Step 2: Serve a Notice of Unpaid Balance
Before filing a mechanics lien in New Jersey, the contractor must serve a Notice of Unpaid Balance (NOUB) on the property owner. The NOUB is a preliminary notice that advises the owner of unpaid balances and gives them an opportunity to make payment before a mechanics lien is filed. The NOUB must be served within 90 days of the last day the contractor provided services or materials to the property.
Step 3: File the Mechanics Lien
If payment is not made after the NOUB is served, the contractor can proceed to file the mechanics lien. The mechanics lien must be filed in the county where the property is located. The lien must be filed within 90 days of the last day the contractor provided services or materials. The mechanics lien must include a description of the work performed, the amount owed, and the name and address of the property owner.
Step 4: Serve the Mechanics Lien
After the mechanics lien is filed, the contractor must serve a copy of the lien on the property owner. The lien must be served within ten days of filing. The service can be done certified mail or personal service. The lien must be served on the owner’s last known address, which can be found in the county clerk’s office.
Step 5: Enforce the Mechanics Lien
If the property owner still does not make payment after the mechanics lien is served, the contractor can proceed to enforce the lien. The lien can be enforced through a lawsuit, which will require the contractor to prove that the work was done and that payment has not been made. If successful, the court may order the sale of the property to satisfy the lien.
FAQs
What types of work can be covered a mechanics lien in New Jersey?
According to the Construction Lien Law (N.J.S.A. 2A:44A-1 et seq.), any person who, with the consent of the owner, has performed services, furnished materials, or made any improvement to the property can file a mechanics lien.
When should a Notice of Unpaid Balance be served?
The Notice of Unpaid Balance (NOUB) must be served within 90 days of the last day the contractor provided services or materials to the property.
What should be included in the mechanics lien?
The mechanics lien must include a description of the work performed, the amount owed, and the name and address of the property owner.
How is the mechanics lien served?
The mechanics lien must be served on the property owner within ten days of filing. The service can be done certified mail or personal service. The lien must be served on the owner’s last known address, which can be found in the county clerk’s office.
How can a mechanics lien be enforced?
If the property owner still does not make payment after the mechanics lien is served, the contractor can proceed to enforce the lien. The lien can be enforced through a lawsuit, which will require the contractor to prove that the work was done and that payment has not been made. If successful, the court may order the sale of the property to satisfy the lien.
Conclusion
Filing a mechanics lien in New Jersey can be a complicated process. It is essential to follow the steps outlined in this article carefully. The most critical step is filing the mechanics lien within the required time limits. A missed deadline can result in a loss of lien rights. With the right guidance, contractors can use the mechanics lien process to their advantage and ensure that they are paid promptly and fairly for their work.