Menu
Home>Levelset Community>Legal Help>Can I file a mechanic's lien?

Can I file a mechanic's lien?

New Jersey

I'm a contractor working on a large residential custom home. If I have a written contract that does not include mandatory language (cancellation clause), but is otherwise specific as to the project, time, sum, etc., can I still file a lien?

1 reply

Apr 13, 2021

From your question it sounds as if are talking about the 3 day cancellation language which licensed NJ home improvement contractors ("HIC"'s) are obligated to include in their homeowner contracts for renovations. As you appear to already know, the NJ Consumer Fraud Act is a notorious burden on every HIC. If you are working on a residential project in NJ, you need to file the Notice of Unpaid Balance (the "NUB") and simultaneously file the demand for a hearing with the American Arbitration Association ("AAA"), before you can file the lien. This process happens completely independent from the homeowner's potential counterclaim under the CFA. The county recorder of deeds and the AAA arbitrator are unlikley to independently verify or objectto any part of your contract. However, the homeowner's receipt of the NUB or the AAA demand may send them to an attorney who might alert them to the potential of a counterclaim under the CFA. If it's a new home (rather than a renovated home), the CFA would not apply.

Please give a call if you want to talk about it.    

0 people found this helpful
Helpful