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Do you have to bond out a mechanics lien on a commercial property before you can challenge it in court.

New JerseyBonding Off LienMechanics Lien

My friend had a commercial property in NJ. The HVAC people did not complete the job and placed a lien on the property claiming that they did. They also claim that there were change orders but can provide no proof that they were done or even agreed to. Someone told me that before we can go to court and ask that they court remove the lien we have to bond it out. Is this true?

1 reply

Oct 17, 2019
Generally, no - a property owner may challenge a lien that's been filed on their property without having to first bond off the mechanics lien. Of course, note that challenging the lien won't result in the discharge of that lien claim unless the challenge is successful. So, if there is a rush to get a lien off of the project property, bonding off the lien before challenging the claim may be an option. For more information on bonding off a lien: Primer on Mechanics Lien Bonds and Bonding a Mechanics Lien. Additionally, I think this resource might be valuable A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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