CONSTRUCTIONI LAW IN BERGEN AND PASSAIC COUNTIES: NEW JERSEY'S CONSTRUCTION LAW'S FILING RESPONSIBILITIES AND POTENTIAL SANCTIONS

If a lien claimant is interested in filing a construction lien under New Jersey's Construction Lien Law (Act), the Act must be followed carefully. The specific form of the lien is literally attached to the Act. That form should be used without material deviation.

The amount of the lien is limited to the unpaid balance of the contract price for the work, services or materials. The lien must be based on a legitimate factual basis and the amount can not be willfully overstated. Although the lien may be amended from time-to-time in a form that is also specifically identified in the Act, all of the conditions of the Act must be again satisfied including, certain notice responsibilities which will be addressed in a future blog. 

The construction lien must be filed within ninety (90) days after the work or materials subject of the contract were last provided. Services of warranty work does not extend the time. This deadline can not be extended. It should be watched closely. 

If a lien claimant files a construction lien improperly under the Act, the claimant will sustain serious sanctions. 

Those sanctions are: (1) loss of the right to file a lien subject of the defective construction lien; (2) litigation costs that may result from the defective lien, including, attorney fees; and, (3) damages that interested parties may sustain as a result of the defective construction lien.