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How to File a Mechanics Lien in New Jersey

5,224 views December 3, 2019 5:06

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ChannelLevelset

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Download a free New Jersey lien form and follow along if you’re filing it yourself, or send one stress-free through Levelset at app.levelset.com/wizard/SelectDocument/1.

-Step 1. Preparing your New Jersey mechanics lien claim form (0:22)
If you’ve sent your required Preliminary Notice, the first step to filing a New Jersey Mechanics Lien is to fill out the Mechanics Lien claim form. The information you’ll need is:
Your information;
Property owner information;
Property description;
Correct lien amount;
Date that the written contract was signed;
Hiring party;
Description of labor, services, and materials provided;
Date of last furnishing;
And signature and notarization.

If you’re filing a lien on a residential project, there’s a few extra steps that need to be taken before filing. For more information on this you can always check out our New Jersey state resources at levelset.com/mechanics-lien/new-jersey-lien-law….

-Step 2: Recording your New Jersey Mechanics Lien (1:11)
A. When to file your New Jersey Mechanics Lien (1:14)
The deadline to file your New Jersey Mechanics Lien depends on the type of project you are working on. For most projects, the deadline to file is 90 days from the date you last provided labor or materials to the project. But, if the project is residential, then the deadline is extended to 120 days.

B. Where to file your New Jersey mechanics lien (1:26)
New Jersey mechanics liens need to be recorded with the county clerk in the county where the property is physically located. It’s a good idea to call the county recorder ahead of time so you can make sure you get your lien filed correctly the first time. We’ve compiled a list of all the New Jersey county offices that record Mechanics Liens and links to each of their websites on levelset.com/blog/how-to-file-mechanics-lien-ne….

C. How to get your lien recorded (1:53)
Some counties in New Jersey allow for mechanics liens to be electronically recorded. This is the quickest solution. If not, you can always send the original copy to the right county clerk office. The lien may be delivered via mail or FedEx, or physically walked in, by either you or a courier.
Note that if you mailed your lien to the county for recording, or sent it via a courier, include a self-addressed stamped envelope with return instructions. That way you can get copies of the recorded lien for your records and to serve the lien on the required parties.

-Step 3: Serving notice (2:32)
In New Jersey, when a Mechanics Lien is filed, a copy of it needs to be sent to the property owner within 10 days of filing. That copy must be signed, dated, and stamped by the county clerk. If you didn’t contract directly with the property owner, a copy also needs to get sent to the GC.
New Jersey has a two-fold service requirement. Not only does a copy need to be sent by certified mail with return receipt requested, but also by regular mail. The best practice here is to serve notice as soon as you can after you file your lien claim.

-Step 4: Staying on top of your lien (3:20)
A. Enforcement action (3:22)
A New Jersey mechanics lien is only effective for 1 year. If you don’t think payment is coming soon, it may be time to file an action to enforce your claim. Keep in mind that the clock starts running from the last day of furnishing labor or materials. But, if the owner sends a written demand to commence an action, then you’ll only have 30 days from receiving that notice to enforce your claim..
If you’re not quite ready for a lawsuit, you can always send a Notice of Intent to Foreclose. Consider this a final warning, that if you don’t get paid soon, you’ll be forced to take legal action to collect your money. You can download a free Notice of Intent to Foreclose form that has helped thousands of contractors get paid at levelset.com/foreclosure/notice-of-intent-to-fo….

B: Release of a lien claim (3:49)
If you do end up getting paid, New Jersey requires you to release the claim by filing a Certificate of Discharge with the county clerk within 30 days. If you don’t you can be liable for attorney fees, court costs, and any other damages if the owner has to request the court to discharge the lien themselves.

Over 500,000 contractors and suppliers connect on Levelset’s cloud-based platform to make payment processes stress-free. Users easily exchange payment documents like Lien Waivers, Pay Applications, and Preliminary Notices, they see a complete picture of who is on their job, and are empowered with the resources and knowledge they need to be confident in payment. The results are faster payments and fewer surprises.
Levelset is venture-backed by S3 Ventures, Altos Ventures, and Brick & Mortar Ventures. Headquartered in New Orleans with offices in Austin and Cairo, Egypt, Levelset employs more than 150 people. For more information about Levelset, visit levelset.com or call 866-720-5436.

About this tutorial

Levelset published this 5:06 video tutorial on December 3, 2019. It has been watched 5,224 times on YouTube.

Channel
Levelset
Duration
5:06
Published
December 3, 2019
Views
5,224
Likes
41

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