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I am the owner of a retail store, Can I file lien ?

New JerseyMechanics Lien

A contractor purchased quartz countertop from me for a new house to be sell. the fabricator completed works, but the contractor refused to pay me the balance. Can I file lien?

3 replies

Aug 25, 2020

Provided that the countertop was delivered to the site within the last 60 days, you should be able to file a lien. In NJ, residential liens are governed by a separate statute than the Construction Lien Law which applies to non-resdiential projects. For residential liens, the claimant must first file a Notice of Unpaid Balance ("NUB") within 60 days of the last day that work was performed at (or that materials were delivered to) the improved property. The property owner must be served with the NUB. Lien claimants for residential projects must also file and serve a demand for arbitration with the American Arbitration Association ("AAA") at the same time that owner is served with the NUB. Pending the outcome of the arbitration with the AAA, the lien claimant must file the actual lien within 120 days of the last day that work was performed at (or that materials were delivered to) the improved property. It's confusing, but liening the property prior to it being flipped is probably the best way for you to get paid.  

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Mar 15, 2021
Material suppliers do have lien rights under New Jersey Law. A supplier must have a contract with subcontractor, the contractor, or the owner to qualify. Essentially you need to be within the contractual chain. In your case, it sounds as if the contractor who purchased the material may be the owner of the property, or it may be in contract with the owner. Under those scenarios you would qualify. Since this is a residential project that you supplied materials too, you have 60 days from your last date of work (i.e. date materials were supplied and delivery ticket signed) to file a “Notice of Unpaid Balance and Right to File Lien” form. The Notice will have to be served in accordance with the NJ Lien law and you must demand arbitration to ultimately determine if you have a right to file the lien. The arbitrator will make a decision on whether you can file the Lien only. If you prevail in the arbitration, you will file the lien, and then you could file a lawsuit to foreclose on that lien. Residential liens involve a complicated process and it may be in your best interest to retain counsel for the filing.

Matthew Lakind, Esq.

Tesser & Cohen

946 Main Street

Hackensack, NJ 07601

Ph: 201-343-1100

Fax: 201-343-0885

Email: mlakind@tessercohen.com
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Jul 2, 2023

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