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Loan broker lien = Mechanics lien in NJ??

New JerseyMechanics LienRight to Lien

I am a loan broker, can I file a mechanics lien BEFORE the closing of the loan to guarantee payment of my services to arrange the loan, and managing all the complications of the deal??

1 reply

Sep 24, 2019
Mechanics liens are generally only available for those who perform construction-related work which provides a permanent improvement to the project property. So, while those who provide some other sort of benefit to the property or property owner may be entitled to certain remedies, mechanics liens typically won't be available for work that doesn't actually improve the project property. To be sure, New Jersey's mechanics lien rules follow the general trend. There's nothing in the New Jersey mechanics lien statute which appears to indicate that those who broker loans are entitled to mechanics lien rights. In fact, the only real discussion of loans in the statute appears in relation to mechanics lien priority. But again - simply because mechanics lien rights might not exist doesn't mean that some other payment recovery method won't be available. Legal action, or the threat of pursuing legal action, can be just as effective, albeit less efficient, as mechanics liens.
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