3 things you need to know about mechanic’s liens

On Behalf of | May 31, 2022 | Construction Liens |

If you are a contractor or subcontractor working in the state of New Jersey, it is important that you understand mechanic’s liens. This legal document allows you to secure payment for services rendered on a project by filing a lien against the property. In this blog post, we will discuss some facts about New Jersey mechanics liens that every contractor should know!

The deadlines

If you are planning on filing a mechanic’s lien in New Jersey, it is important to be aware of the deadlines. For private projects, the deadline is 120 days after the last date of work. For public projects, the deadline is 90 days after the last date of work.

It is important to note that these deadlines are not always set in stone. In some cases, the deadlines may be extended due to extenuating circumstances, such as weather delays or unforeseen circumstances beyond the control of the contractor.

The process

Once you have decided to file a mechanic’s lien, the next step is to send a notice of intent to the property owner. This notice must be sent at least 30 days before filing the lien and must include information about the outstanding debt as well as your intention to file a lien if payment is not received.

After the notice of intent has been sent, the next step is to file the lien with the county clerk. Once the lien gets filed, the property owner will have some time to pay the outstanding debt. If payment is not received within this time frame, the contractor can then take legal action to foreclose on the property.

The consequences

If you are thinking about filing a mechanic’s lien, it is important to be aware of the potential consequences. First and foremost, filing a lien can damage your relationship with the property owner. Even if you are ultimately successful in getting paid, the process can be long and drawn-out, leaving a sour taste in the mouth of the property owner.

Furthermore, if you are unsuccessful in your attempt to collect payment through a mechanic’s lien, you may be responsible for the property owner’s legal fees.

There are many more things to learn about mechanic’s liens in New Jersey before taking the plunge. However, understanding the basics of this process is a good start for any contractor who may find themselves in this situation.

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