Hi,
Im in NJ getting ready to file a Lien Claim.
Questions:
Am I obligated to send the customer a notice?
After the Lein claim is filed, do I get assigned an arbitrator?
How do I find out how much the arbitrator fees are?
1 reply
Dec 20, 2019
When filing a New Jersey mechanics lien claim, the property owner and general contractor must be sent notice that the lien was recorded. This makes sense - after all, since the point of a lien claim is to get paid, the relevant parties must be aware of the claim. If hired by someone else, it's still a usually good idea to give your customer notice - though it might not be required.
If a mechanics lien is being filed on residential property in New Jersey, that filing actually comes in a 3-part process: the Notice of Unpaid Balance, the Demand for Arbitration (and subsequent arbitration), the lien filing itself. When a New Jersey claimant sends their Demand for Arbitration to the American Arbitration Association, the claimant is automatically assigned an arbitrator. More on this process here: New Jersey Residential Mechanics Lien: A Convoluted Process.
Regarding the fees associated with filing for arbitration - arbitration fees are generally $300 - $400 dollars. Note, though, that if a claimant proceeds with their claim, they may be able to push for the other side of the dispute to pay for arbitration costs.