The New Jersey Construction Lien Law has just had a major overhaul, the result of over three years of difficult work by the state Law Revision Commission. Among other significant changes, the revised CLL, N.J.S.A. 2A:44A-1 et seq., which took effect Jan. 5, clarifies the law and procedure concerning liens arising from residential construction contracts (RCCs).
RCC liens are subject to additional, time-sensitive and burdensome prelien procedures, including the filing and service of a Notice of Unpaid Balance and Right to File a Lien (NUB) and an expedited arbitration proceeding to establish a prima facie right to file a RCC lien. §§ 20-21. Noncompliance with these prelien procedures invalidates the lien, forfeits subsequent lien rights respecting the work for which the lien was claimed and imposes liability for reasonable legal expenses including attorneys’ fees. §§ 15 and 21(13). The prelien procedures are not new for RCC liens, but significant changes and clarifications have been made.
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