Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who provides work, services, or materials in connection with improving property pursuant to a contract. Includes work done by design professionals (architects or surveyors) or even security guards. J. R. Christ Const. Co. v. Willete Associates, 47 N.J. 473, 221 A.2d 538 (1966) NJ REV STAT § 2A:44A-3 DEADLINE TO PERFECT Deadline to file lien depends on whether commercial or residential construction contract: • Commercial – 90 days after the date or last work, services, or material for which payment is claimed. Filing of a Notice of Unpaid balance (NUB) is optional for commercial. • Residential – A Construction Lien Claim must be filed 120 days following date of last work/ services for which payment is claimed but must be preceded by the filing of a Notice of Unpaid Balance (NUB). The NUB must be filed within 60 days of last work/services and a demand for arbitration within 10 days of filing. NJ REV STAT § 2A:44A-6 (Commercial) NJ REV STAT § 2A:44A-21 (Residential) BROKEN PRIORITY Construction lien attaches as of the date that the lien claim is filed. No relation back. No relation back to commencement of work, but can relate back to the date the NUB is filed. NJ REV STAT § 2A:44A-22 NJ REV STAT § 2A:44A-10 DURATION OF LIEN Lien will expire if not enforced the earlier of (i) 1 year from last date of work for which payment is claimed or (ii) 30 days of receiving written demand to initiate action. NJ REV STAT § 2A:44A-14 CONTENTS OF LIEN (1) Signed statement verified by oath; (2) statement of work or materials furnished; (3) claimant’s identity and contractual relationship to owner; (4) description of land sufficient to identify the same; (5) value of the work or materials; (6) date of last work or furnishing; and (7) calculation of amount due. Should be per form set forth in NJ REV STAT § 2A:44A-8 Strict compliance with above requirements mandated; however, lien will be construed liberally to give effect. Aloia Const. Co. v. BFW/Howell Assocs., LLC, No. A-0580-08T1, 2010 WL 322890, at 4 (N.J. Super. Ct. App. Div. Jan. 29, 2010). NJ REV STAT § 2A:44A-6 NEW JERSEY NEW JERSEY – 533 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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