It’s frustrating when you don’t get paid for your hard work, but it can happen more often than you think when you work in construction. Thankfully, construction liens offer an effective way to protect yourself against this problem.
Liens place a legal claim on the property you helped improve, creating problems for property owners as liens can prevent them from selling the property until they resolve the payment dispute.
But before you file a lien, you need to know what could make it invalid. Below are five possible reasons for an unenforceable lien.
Missing critical deadlines
New Jersey law establishes strict time limits for filing construction liens. You need to file your lien within 90 days of your last work date or material delivery. However, if you worked on a residential project, you have up to 120 days from the last work date or delivery to file your lien.
Making mistakes in the paperwork
Your lien claim requires specific details about the work you did. These include:
- Property description
- Work performed
- Amount owed
- Project dates
- Party names and addresses
Missing details or even small errors in the information, like a wrong date or amount, may invalidate your entire claim.
Lacking proper notice
New Jersey requires specific notices before filing a construction lien. Failing to provide proper notice to property owners and other involved parties will void your lien rights. Each notice must follow exact timing and content requirements.
Doing unqualified work
Only certain types of construction work qualify for lien rights in New Jersey. Maintenance, repairs or work not permanently improving the property value might not qualify. You need to make sure your work type supports a valid lien claim.
Signing away your rights
Sometimes, contracts may include lien waivers or releases. If you sign these documents, you might unknowingly give up your right to file a construction lien. Always review contract terms carefully before signing.
Protecting your payment rights
Filing valid construction liens demands attention to detail and compliance with strict legal requirements. The examples above are just some reasons your liens might become invalid. Consider consulting a legal professional to help ensure proper filing procedures and protect your lien rights.
