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A contractor is threatening to file a mechanics lien against the condo assoc when the underlying work was performed in
A contractor is threatening to file a mechanics lien against the condo assoc when the underlying work was performed in single privately owned unit and not the common property. I don't think that's appropriate or valid. Am I correct?
2 replies
Jun 25, 2020
Generally speaking, it’s very unlikely that a mechanic’s lien against an association for work performed entirely within a single unit would be appropriate. NJ Rev Stat § 2A:44A-3 subsection d provides that:
“d. If the work, services, material or equipment are performed or furnished solely within or as part of a residential or nonresidential unit, the lien shall attach only to the interest of the unit owner...”
The Garden State also imposes some harsh penalties on claims found to be “...frivolous, false, unsupported by a contract, or made with malice or bad faith or for any improper purpose.” However, lien law is complicated, and not everyone may understand how to correctly file when it comes to condominiums. It’s entirely possible that a contractor would threaten a lien against an association mistakenly, and without malicious intent, overlooking the unit owner. It may be a good idea to reach out to the contractor in question and point out that the unit where work was performed has an owner separate from the association, as New Jersey also has stringent process and contract requirements for liens on residential construction projects. Should the contractor decide to proceed with their claim, speaking with an attorney versed in condominiums and lien law would be wise.
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Jun 26, 2020
A written contract is among the prerequisites to file a lien against a residential property in New Jersey. Did the association sign a contract for the work in the unit? If not, the contractor will be out of luck.