Construction liens frequently come up in large development projects involving contractors and subcontractors. Contractors may have a claim that the property owner failed to pay the balance owed on the service. An attorney at a a New Jersey collections law office can explain to you that the filing of a construction lien and enforcement of the lien can be very difficult. As a result, you may want to speak with experienced counsel.
Common Problem: Property is Transferred With a Lien Attached
A common problem with construction liens that a New Jersey collections lawyer faces is that the owner of the property develops the property for sale and then subsequently transfers the property. If a sale of the property occurs while the lien is being filed or even after the lien is filed, it can be confusing to determine what party is responsible for paying the unpaid balance. An attorney can help you determine which party to file the lien against and ensure that the debtor pays back what is owed.
Process to Enforce a Construction Lien
The process to enforce construction liens was recently amended in New Jersey. The process can be complicated and you will want to work with an experienced New Jersey collections lawyer. Generally, you will have to follow these steps:
- Filing Lien Enforcement Action. You will have to file a lien enforcement action in a New Jersey Superior Court. The action must be filed within one year of the final date of nonpayment. You must also make sure to join all the relevant parties to the claim such as the property owner, a prime contractor or subcontractor, and any other interested party; and
- File a Notice of Lis Pendens. You will also need to file a Notice of Lis Pendens. This notice must be filed in the county clerk’s office where the dispute occurred. This is essentially a notice that a lawsuit has been filed.
Contact a New Jersey Collections Law Office
If you have any questions about enforcement of construction liens, you should contact an experienced attorney. You can schedule a consultation to discuss the specifics of your case with an attorney at Snelllings Law LLC by calling 973.265.6100.