New Jersey Preliminary Notice Guide and FAQs

Non-residential projects

A preliminary notice isn’t required to secure lien rights, but does have its advantages. When a Notice of Unpaid Balance & Right to Lien (NUB) is filed, a mechanics lien will ensure priority over other encumbrances to the property, or buyers, if the transaction occurs subsequent to the filing of the notice.

Residential projects

Every potential claimant must file and serve a Notice of Unpaid Balance & Right to Lien on residential projects to be able to file a New Jersey mechanics lien. Furthermore, claimants must also serve a demand for arbitration (with the American Arbitration Association or other ADR party if specified in the contract), and include a completed and signed copy of the Notice of Unpaid Balance and Right to Lien and an affidavit that the notice has been lodged for record.

• For more on the NJ residential liens see: New Jersey Residential Mechanics Liens- A Convoluted Process

Non-residential projects

If the claimant chooses to send notice, it may be filed any time before the lien claim is filed; therefore at least 90 days after last furnishing labor and/or materials to the project.

Residential projects

On residential projects, notice must be sent within 60 days of last furnishing labor and/or materials to the project. Once filed, a copy of the recorded Notice of Unpaid Balance & Right to Lien, an affidavit proving the notice was filed, and a demand for arbitration must be sent within 10 days.

Non-residential projects

On non-residential projects, notice only needs to be filed with the county clerk’s office in the county where the property is located. However, it’s a good idea to send a copy to the property owner and general contractor (if applicable) as well.

Residential projects

The notice on residential projects must be filed with the county clerk’s office in the county where the property is located, all parties up the contracting chain, and the American Arbitration Association (or other ADR party if agreed-upon).

Be careful when the owner (on a residential or commercial project) is a business entity, see: Sending Notice to Corporations in New Jersey

A Notice of Unpaid Balance & Right to Lien should include all of the required language under NJ Stat. §2A-44A-20(b)(1) and contain the following information:

• Claimant’s name & address (and name of business entity if applicable)

• Property owner’s name

• Property description (including block & lot numbers)

• Amount claimed (amount calculated with the formula provided in the form)

• Interest the lien is claimed against (owner, unit owner, community association, etc.)

• Date of contract

• Hiring party name & address

• Description of labor and/or materials provided

• Last date of furnishing

• Identification whether the project is residential or not

• Signed and notarized

→ Download a free New Jersey Notice of Unpaid Balance & Right to Lien form

→ An AAA Demand for Arbitration form can be found here

Non-residential projects

The notice only needs to be filed with the county clerk’s office in the county where the property is located. You can find a list of all the New Jersey county recorder’s offices here. It may be delivered to the property owner or any other interested party, but it is not required.

Residential projects

For residential projects, the notice must be lodged for record with the county clerk in the county in which the property is located, and must be served on the property owner and all parties “up-the-chain” by certified mail, return receipt requested, AND by regular mail.

In New Jersey, notices are considered delivered when sent by certified mail. However, on non-residential projects, the notice is effective for priority purposes from the date it is lodged for record.

Non-residential projects

For non-residential projects the failure to file a preliminary notice has no effect on the ability of the lien claimant to file a mechanics lien. It will only affect priority if there are other encumbrances on, or transfers of, the property.

Residential projects

Failure to timely file and serve the preliminary notice on residential projects is fatal to the lien claim.

Bond claims

All claimants who didn’t contract directly with the prime contractor who furnished the bond must send a preliminary notice to have the right to make a claim against the public payment bond in New Jersey.

• A copy of the bond should be requested to determine if there are any other notice requirements

Lien on contract funds

Every claimant must send a preliminary notice to file a lien on contract funds. Note, that this remedy isn’t available for any state or state agency commissioned projects.

Bond claims 

Preliminary notice must be given prior to the commencement of work.

Lien on contract funds

Notice must be served no later than 20 days after the date of first furnishing labor and/or materials to the project.

Bond claims

Notice must be provided to the general contractor who posted the payment bond on the project.

Lien on contract funds

Preliminary notice must be filed with the either the municipal clerk, the chief financial officer of the county or the chairman of the commission, board or authority who commissioned the work.

Bond claims

The statutes do not provide much guidance on the contents of this notice beyond, “provide written notice… that said person is a beneficiary of the bond.” Therefore, best practice is to include all of the required information for the notice below, and include a statement that the claimant is a beneficiary of the bond.

Lien on contract funds

A New Jersey Notice of Delivery of Labor or Materials on municipal projects should contain the following information:

• Claimant’s name, address, & phone number

• Hiring party’s name

• Date of first furnishing or anticipated date of commencement

• Description of labor and/or materials to be furnished

• Project name & county

→ Download a free NJ Notice of Delivery of Labor or Materials here

Bond claims

Preliminary notice must be sent by certified mail (or other method of delivery provided that the claimant has proof of the delivery of the notice).

Lien on contract funds

The preliminary notice of a claimant making a claim on the contract funds must be filed with the either the municipal clerk, the chief financial officer of the county or the chairman of the commission, board or authority who commissioned the work.

Both notices are considered served when actually received or filed with the public entity.

If either notice is served late, it is not fatal to the claimant’s rights. However, the amount of protection will be limited to the value of labor and/or materials provided from the date the notice was served, and everything thereafter.