Page 34 - State Law Summary of Mechanic's Lien Law

New Jersey NJ

What is the statutory authority?
New Jersey Permanent Statutes, Title 2A, §§ 44A-1 to 2A:44A-38 and 2A:45-1 to
2A:45.5.

What is the Attachment Date of the Mechanic’s Lien?
The mechanic’s lien attaches to the property at (and priority is determined by) the
time of filing of the lien. N.J. St. § 2A:44A-20(a).
What constitutes visible commencement of construction?
There is no visible commencement rule in New Jersey.
What is the priority of the insured construction mortgage/
deed of trust?
A construction loan mortgage takes priority over mechanic’s liens if it is recorded
with the county clerk before the lien claimant files a Notice of Unpaid Balance
and Right to File Lien, provided the mortgage secures obligatory construction
advances. N.J. St. § 2A:44A-20(b).
If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
No later than 90 days following the date of the last work, services, material or
equipment was provided for which payment is claimed. In the case of residential
construction, the lien claim must be recorded no later than 10 days after receipt
by the claimant of the arbitrator’s determination and within 120 days following the
last work, services, material or equipment provided. N.J. St. § 2A:44A-6.

What is the period of enforcement of a filed mechanic’s lien?
Action to enforce the lien must be brought within 1 year of the date of the last work,
services, material or equipment was provided. N.J. St. § 2A:44A-14.
Is there a procedure to bond over the mechanic’s lien(s)?
Yes. Pursuant to N.J. St. § 2A:44A-31-33, a lien claim shall be discharged of record
by the county clerk upon the execution and filing with the county clerk of a surety
bond, or the deposit of funds with the clerk of the Superior Court of New Jersey, in
favor of the claimant in an amount equal to 110% of the amount of the lien claim.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
The ALTA 32 is not available; however, the ALTA 33-06 Disbursement Endorsement
- New Jersey form is available for use.

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