When should you file a construction lien?

On Behalf of | Sep 20, 2019 | Construction Liens |

For New Jersey contractors and subcontractors, a construction or mechanic’s lien can be a beneficial solution to any payment issues. When you enter into a contract, you are entitled to payment. If you do not receive the payment as agreed upon, you do have recourse. If you utilize a mechanic’s lien, then you effectively put a hold on the sell or refinance of a property. The Balance explains that if a company wants to sell the property, it must pay its debts.

How do you know when to put on a lien? Most people do not want to act prematurely. Most contractors want payment right away. After you complete work, it makes sense to want payment as soon as possible. When a company does not offer payment, however, you have to decide when it is time to file a lien. For any person who does not have a direct relationship with the owner of the property, he or she must provide a notice before the lien. So, if you file notice, then you have to wait 20 days before you can file the lien.

You must send these notices to the owner, lender and the general contractor. You will also have to provide the bill and statement that outlines the services that you provided. In New Jersey, if you worked on a non-residential project, then you have 90 days to file the lien. If you worked on a residential property, then you have 120 days.

None of the above information is intended to be legal advice. It is solely for educational purposes.

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