If we give a client payment terms with interest and they stop making payments, can a lien be filed for the balance. For example, if client signs a contract to make 48 monthly payments but only makes 12, can we file a lien? Thanks
As long as you have a written contract, the unpaid balance applies to construction work that has been completed, then you could file a lien for the unpaid balance. There are some other requirements that may apply depending on whether the job is a residential or a commericial project, but in general, a contractor has a right to file a lien for the unpaid balance on any work already performed/materials supplied.
No, that argument would probably not be successful. When a claimant can lawfully file a lien claim against a property is bound by the last day that contract work was performed on the real property. You could try to argue that the payment terms represented an amendment to the construction contract, and that receipt of the last payment represented your continued performance of "contract work," but all the NJ case law for lien cases refers to the date when the contractor was last physically on site performing work pursuant to the written contract. Courts tends to strictly enforce lien laws and do not embrace creative amendments which either frustrate or substantially change the coverage of the law.