5 Things to Know When Filing a Mechanics Lien
Contractors and suppliers are fortunate to have strong lien rights in New Jersey. If they are not paid on a New Jersey job, they can file a lien to speed up payment and protect themselves. However, there are 5 key things to know when considering filing a lien:
- General contractors, subcontractors, laborers, material and equipment suppliers, architects, engineers, surveyors and construction managers are all entitled to mechanics lien rights, but only suppliers to supplier directly in contact with the property owner are entitled.
- A participant in a non-residential project has 90 days from the date the labor or materials were last provided to the property to file a lien; for residential properties, a lien must be filed within 120 days.
- Residential projects also require that a Notice of Unpaid Balance and Right to Claim Lien be filed within 60 days after the date the service or materials were last provided. Non-residential projects do not require a similar notice, although it is always a good idea.
- New Jersey requires that mechanics liens be notarized.
- New Jersey does not require that a legal property description be included in the lien, but it is smart business practice to include it.