Construction Lien Release (Recorded Lien Cancellation) - New Jersey

DISCHARGE / RELEASE OF CONSTRUCTION LIEN CLAIM

(New Jersey)

FOR FILING WITH THE COUNTY CLERK
[________________________________] County, New Jersey

PART ONE: FULL DISCHARGE OF CONSTRUCTION LIEN CLAIM

(Pursuant to N.J.S.A. 2A:44A-33 and 2A:44A-35)

1. Original Lien Filing Information

2. Property Information

(If legal description is lengthy, state "See Exhibit A attached hereto and incorporated by reference.")

3. Parties

4. Original Lien Claim Details

5. Discharge Statement

The undersigned, [________________________________] ("Lien Claimant"), being the party who filed the construction lien claim described above with the County Clerk of [________________________________] County, New Jersey, hereby discharges said lien claim and releases, cancels, and relinquishes all right, title, interest, and claim under said construction lien against the above-described real property and all improvements thereon.

This discharge is made pursuant to N.J.S.A. 2A:44A-33 and N.J.S.A. 2A:44A-35.

Reason for Discharge:

☐ Full payment has been received in the amount of $[________________________________], representing complete satisfaction of all sums claimed under the lien.

☐ Settlement and compromise have been reached between the parties, with the Lien Claimant accepting $[________________________________] in full and final satisfaction of all claims.

☐ The underlying claim has been resolved by final judgment entered on [__/__/____] in Case No. [________________________________], Superior Court of New Jersey, [________________________________] County.

☐ The lien claim has been forfeited under N.J.S.A. 2A:44A-14(a): the last work, services, material, or equipment for which the lien was filed was provided on [__/__/____], and the claimant did not commence an enforcement action within one year of that date or within 30 days after receiving a qualifying written demand, if one was served.

☐ Other: [________________________________]

Effective Date of Discharge: [__/__/____]

The Lien Claimant warrants that no assignment, transfer, or encumbrance of the lien claim or the underlying debt has been made, and that the Lien Claimant has full authority to execute this discharge.

The County Clerk of [________________________________] County, New Jersey, is hereby authorized and directed to discharge and cancel the above-referenced construction lien claim of record.

6. Claimant Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]

By: ______________________________ Its: [________________________________]

7. Acknowledgment

STATE OF NEW JERSEY
COUNTY OF [________________________________]

On this [____] day of [________________________________], 20[____], before me, the undersigned, a Notary Public of the State of New Jersey, personally appeared [________________________________], who I am satisfied is the person(s) who signed the within instrument, and I having first made known to said person(s) the contents thereof, said person(s) acknowledged that he/she/they signed, sealed and delivered the same as his/her/their voluntary act and deed, for the uses and purposes therein expressed.

Notary Public of New Jersey: ______________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

(NOTARIAL SEAL)

PART TWO: PARTIAL DISCHARGE OF CONSTRUCTION LIEN CLAIM

1. Partial Discharge Statement

The undersigned, [________________________________] ("Lien Claimant"), being the party who filed the construction lien claim with the County Clerk of [________________________________] County, New Jersey, Filing No. [________________________________], on [__/__/____], in the original amount of $[________________________________], hereby partially discharges said lien claim as follows:

Partial Payment Received: $[________________________________]

Remaining Lien Balance: $[________________________________]

Scope of Partial Discharge:

☐ Reduction in Amount Only. The lien claim amount is reduced from $[________________________________] to $[________________________________]. The lien claim continues against all property described in the original filing.

☐ Release of Specific Property. The following described lot(s) or unit(s) are released from the lien claim, with the lien claim continuing against all remaining property described in the original filing:

Released Property: Block [________________________________], Lot [________________________________]

Released Property Address: [________________________________]

☐ Combination. Both a reduction in amount and release of specific property as described above.

Remaining Lien. The Lien Claimant expressly reserves all rights under the construction lien claim as to the unreleased amount of $[________________________________] and any unreleased property.

This partial discharge is effective as of [__/__/____].

2. Partial Discharge Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

(Acknowledgment required — use same form as Part One, Section 7.)

PART THREE: DISCHARGE BY SURETY BOND OR CASH DEPOSIT

(Pursuant to N.J.S.A. 2A:44A-31 and 2A:44A-32)

Method A: Discharge by Surety Bond

NOTICE OF DISCHARGE OF CONSTRUCTION LIEN CLAIM BY SURETY BOND

To: The County Clerk, [________________________________] County, New Jersey

The undersigned hereby files a surety bond with the County Clerk pursuant to N.J.S.A. 2A:44A-31, for the discharge of the following construction lien claim:

Bond Information:

Statutory Requirements — N.J.S.A. 2A:44A-31:

☐ The bond is issued by a surety company authorized to transact business in New Jersey.

☐ The bond is in favor of the lien claimant.

☐ The bond amount equals 110% of the amount claimed by the lien claimant, i.e., $[________________________________] (110% of $[________________________________]).

☐ For residential construction contracts: The bond amount is no greater than the earned amount of the contract between the owner and contractor as determined by the arbitrator, if applicable.

Effect of Bond Filing (N.J.S.A. 2A:44A-32): Upon execution and filing of the surety bond with the County Clerk, the lien claim is discharged and the property is released from the lien claim. The lien claimant's remedy then lies against the bond.

Filed by:

☐ Owner
☐ Community Association
☐ Contractor
☐ Subcontractor

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

Method B: Discharge by Cash Deposit

(Pursuant to N.J.S.A. 2A:44A-31)

The undersigned hereby deposits with the Clerk of the Superior Court of [________________________________] County, New Jersey, the sum of $[________________________________], equal to 110% of the amount claimed in the construction lien, as an alternative to a surety bond pursuant to N.J.S.A. 2A:44A-31.

The deposit is made in lieu of a surety bond and has the same effect as filing a bond under 2A:44A-32. The deposited funds shall be held by the Clerk of the Superior Court pending final resolution of the lien claim.

Signature: ______________________________

Date: [__/__/____]

Method C: Owner's Certificate and Affidavit (Paid Lien After 13 Months)

(Pursuant to N.J.S.A. 2A:44A-30)

OWNER'S CERTIFICATE OF DISCHARGE OF CONSTRUCTION LIEN CLAIM

The undersigned, [________________________________], being the owner of the property described below (or the authorized representative of a community association), hereby certifies and states:

1. A construction lien claim was filed by [________________________________] ("Lien Claimant") on [__/__/____] with the County Clerk of [________________________________] County, New Jersey, as Filing No. [________________________________], in the amount of $[________________________________].

2. The lien claim has been paid in full, and the Lien Claimant has failed to file a discharge of the lien claim.

3. At least thirteen (13) months have elapsed since the date the lien claim was filed. The lien was filed on [__/__/____], and thirteen months expired on [__/__/____].

4. At least ninety (90) days before filing the attached sworn affidavit, I sent the lien claimant written notice of my intent to file a discharge certificate by certified mail to the last known address stated in the filed lien claim. The notice was mailed on [__/__/____]; proof of mailing is attached as Exhibit [____].

5. I have received no written communication from the lien claimant denying or disputing full payment.

6. Pursuant to N.J.S.A. 2A:44A-30(d), I submit this duly acknowledged certificate together with the sworn affidavit below to discharge the paid lien claim of record.

Property Information:

The County Clerk is requested to discharge the above-referenced lien claim of record upon filing of this certificate.

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

(Acknowledgment required — use same form as Part One, Section 7.)

OWNER'S AFFIDAVIT OF PAYMENT TO DISCHARGE LIEN CLAIM

State of New Jersey, County of [________________]. I, [OWNER OR AUTHORIZED COMMUNITY ASSOCIATION REPRESENTATIVE], being duly sworn, state:

1. I own the property (or am authorized to act for the community association) identified above at [ADDRESS], Block [____], Lot [____], [MUNICIPALITY], [COUNTY] County.
2. I caused full payment of $[____] on [DATE] to [CONTRACTOR OR SUBCONTRACTOR], at [PAYMENT ADDRESS], for the construction lien filed by [LIEN CLAIMANT] on [DATE], Construction Lien Book [____], Page [____]. Proof of payment is attached as Exhibit [____].
3. At least 13 months have passed since that filing. At least 90 days before this affidavit, I mailed written notice of my intent to file the discharge certificate by certified mail to the lien claimant's last known address on the filed claim. The mailing date was [DATE], and proof is attached as Exhibit [____].
4. To the best of my knowledge and belief, the claimant has sent no written denial or dispute of payment in full.

I request that the County Clerk file the accompanying certificate and note the discharge on the original lien record.

Owner or authorized representative: ______________________________ Date: [__/__/____]

Sworn and subscribed before me on [__/__/____] by [NAME]: ______________________________ (Notary Public; commission expires [________]).

PART FOUR: DEMAND FOR DISCHARGE OF CONSTRUCTION LIEN CLAIM

(Letter from Property Owner to Lien Claimant)

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To:
[________________________________]
[________________________________]
[________________________________]

Re: Demand for Discharge of Construction Lien Claim
Property: [________________________________], Block [________________________________], Lot [________________________________]
County: [________________________________], New Jersey
Filing No.: [________________________________]
Date Filed: [__/__/____]

Dear [________________________________]:

I am the owner (or authorized representative) of the above-referenced property. A construction lien claim was filed against this property by you or your company on [__/__/____] with the County Clerk of [________________________________] County, New Jersey, as Filing No. [________________________________], in the amount of $[________________________________].

I hereby demand that you discharge this lien claim for the following reason(s):

☐ Full payment has been made. The total amount of $[________________________________] has been paid in full on [__/__/____]. Proof of payment is attached as Exhibit [____].

☐ The lien claim is forfeited. Under N.J.S.A. 2A:44A-14(a), the claimant must commence an enforcement action within one year after the last work, services, material, or equipment for which the lien was filed, or within 30 days after receiving a qualifying written demand. The last provision occurred on [__/__/____]; [identify the elapsed deadline and any qualifying demand]. No enforcement action was commenced by that deadline.

☐ The lien claim was improperly filed. The lien claim does not comply with N.J.S.A. 2A:44A-6 because: [________________________________]

☐ Residential construction — failure to comply with notice requirements. The lien claim involves a residential construction contract and fails to comply with the residential notice and arbitration prerequisites of N.J.S.A. 2A:44A-21(b), using the notice prescribed by § 20.

☐ The property is exempt. Under the Construction Lien Law, the lien claim may not attach to this property because: [________________________________]

☐ Other: [________________________________]

Legal Consequences of Failure to Discharge:

Under the New Jersey Construction Lien Law:

1. If this lien was paid in full and you fail to file a discharge, N.J.S.A. 2A:44A-30(d) permits an owner certificate with a sworn affidavit after 13 months, provided I gave you at least 90 days' prior certified-mail notice of my intent to file it and received no written dispute of full payment.

2. I may file a surety bond or cash deposit equal to 110% of the claim to discharge the lien under N.J.S.A. 2A:44A-31, and may seek recovery of the costs of obtaining such bond.

3. Frivolous or invalid lien claims subject the claimant to liability for "all court costs, and reasonable legal expenses, including attorneys' fees" and damages under the Construction Lien Law.

Demand. You are hereby demanded to file a discharge of the construction lien claim with the County Clerk of [________________________________] County, New Jersey, within fifteen (15) days of receipt of this demand.

Sincerely,

______________________________
[________________________________]
[________________________________]
[________________________________]

Notice of intent under N.J.S.A. 2A:44A-30(d) (use only for a lien paid in full): I intend to file an owner discharge certificate and sworn affidavit after the statutory 13-month period. This certified-mail notice is being sent at least 90 days before the affidavit is filed. If you dispute payment in full, notify me in writing at [ADDRESS].

PART FIVE: VERIFIED COMPLAINT FOR SUMMARY DISCHARGE OF CONSTRUCTION LIEN CLAIM

(For a new court proceeding under N.J.S.A. 2A:44A-30(b) or (c), file with a proposed order to show cause under R. 4:67. If an action is already pending, have counsel select the proper motion procedure.)

Caption

SUPERIOR COURT OF NEW JERSEY
LAW DIVISION — [________________________________] COUNTY

Docket No. [________________________________]

Proposed Order to Show Cause

Submit a proposed order to show cause with this verified complaint. The court sets the return date, service method and response schedule. Use the court-issued order and comply with its service directions; do not assign a return date in this complaint.

Verified Complaint

I. STATEMENT OF FACTS

1. Plaintiff is the owner of real property located at [________________________________], Block [________________________________], Lot [________________________________], in the [________________________________] of [________________________________], County of [________________________________], State of New Jersey.

2. On [__/__/____], Defendant filed a construction lien claim with the County Clerk of [________________________________] County as Filing No. [________________________________], in the amount of $[________________________________].

3. The lien claim alleges amounts due for: [________________________________].

II. LEGAL ARGUMENT

4. Plaintiff is entitled to discharge of the construction lien claim on the following grounds:

☐ Full Payment. The indebtedness underlying the lien claim has been paid and satisfied in full on [__/__/____]. Despite payment and demand, Defendant has failed to file a discharge.

☐ Forfeiture — Failure to Commence Action (N.J.S.A. 2A:44A-14(a)). The last work, services, material, or equipment for which the lien was filed was provided on [__/__/____]. Defendant failed to commence an enforcement action within one year of that date or within 30 days after receiving a qualifying written demand by personal service or certified mail, return receipt requested, on [__/__/____]. The applicable deadline was [__/__/____], and the lien is forfeited.

☐ Defective Filing. The lien claim fails to comply with the requirements of N.J.S.A. 2A:44A-6 because: [________________________________].

☐ Residential Construction Prerequisites — N.J.S.A. 2A:44A-21(b). The lien involves a residential construction contract, and the Defendant did not meet the required notice and arbitration steps under § 21(b); § 20 supplies the notice form and filing procedures.

☐ Bond/Deposit Filed. Plaintiff has filed a surety bond / cash deposit in the amount of $[________________________________] (110% of the claim) under N.J.S.A. 2A:44A-31 and is entitled to release of the property.

☐ Invalid or Frivolous Claim. The lien claim is invalid because: [________________________________].

III. PRIOR DEMAND

5. On [__/__/____], Plaintiff served a written demand upon Defendant requiring discharge of the lien claim. A copy is attached as Exhibit [____].

6. Defendant has failed to file a discharge.

IV. RELIEF REQUESTED

WHEREFORE, Plaintiff requests that this Court:

a. Enter an order discharging and cancelling the construction lien claim, Filing No. [________________________________], of record;

b. Direct the County Clerk of [________________________________] County to discharge the lien claim;

c. Award Plaintiff all court costs and reasonable legal expenses, including attorneys' fees, as permitted under the Construction Lien Law;

d. Award Plaintiff damages caused by the wrongful lien; and

e. Grant such other relief as the Court deems just and equitable.

DATED: [__/__/____]

______________________________
[________________________________]
Attorney for Plaintiff
[________________________________]
[________________________________]
New Jersey Attorney ID No. [________________________________]

Certification

(New Jersey uses "certification" rather than affidavit under R. 1:4-4)

I, [________________________________], certify as follows:

1. I am the Plaintiff in the foregoing verified complaint.

2. I have personal knowledge of the factual statements in this complaint and its attached exhibits. I certify that the foregoing statements made by me are true.

3. I am aware that if any of the foregoing statements made by me are willfully false, I am subject to punishment.

______________________________
[________________________________]

Date: [__/__/____]

PART SIX: RESIDENTIAL CONSTRUCTION — SPECIAL REQUIREMENTS

(N.J.S.A. 2A:44A-20 and 2A:44A-21)

Notice to Practitioners — Residential Construction Liens in New Jersey

New Jersey imposes additional requirements on construction liens involving residential construction contracts. Under N.J.S.A. 2A:44A-2, these include contracts to construct or improve dwellings or residential units in a real property development; the definition has no four-unit cap.

1. Notice of Unpaid Balance and Right to File Lien (§ 21(b)(1); form and filing procedure in § 20)

Before filing a lien claim arising under a residential construction contract, every lien claimant, including a contractor, must lodge a Notice of Unpaid Balance and Right to File Lien for record with the county clerk within:

☐ 60 days from the date of the last provision of work, services, material, or equipment

After lodging the notice, serve it as N.J.S.A. 2A:44A-7 requires. Follow the arbitration and lien-filing steps in N.J.S.A. 2A:44A-21.

2. Mandatory Arbitration (2A:44A-21)

For residential construction contracts, the dispute must be submitted to arbitration before the lien claimant can file a lien claim. The arbitrator determines the amount, if any, that is owed.

3. Extended Filing Period

For residential construction contracts, the maximum time period to file a lien claim is 120 days from the date of last furnishing (vs. 90 days for commercial).

4. Impact on Discharge

When seeking discharge of a residential construction lien, verify:

☐ Was a Notice of Unpaid Balance lodged for record within 60 days and then properly served?

☐ Was the matter submitted to arbitration as required?

☐ Does the lien claim amount comply with the arbitrator's determination?

Failure to comply with these requirements may provide grounds for discharge through the court procedure in Part Five.

PART SEVEN: RECORDING INSTRUCTIONS AND STATUTORY REFERENCE

New Jersey Filing Requirements

County Clerk Contact — Major New Jersey Counties

Statutory Deadlines and Penalties — New Jersey

Practitioner Notes — New Jersey

1. "Construction Lien" Not "Mechanics Lien." New Jersey uses the term "construction lien" under the Construction Lien Law (CLL), N.J.S.A. 2A:44A-1 et seq. Using the correct terminology in filings is important.

2. 110% Bond — Lower Than Most States. New Jersey requires only 110% of the lien claim for a surety bond or cash deposit, which is among the lowest bond requirements nationally (cf. Montana at 150%, North Carolina at 125%).

3. Owner discharge after full payment (2A:44A-30(d)). If the claimant fails to discharge a fully paid lien, the owner or community association may file a duly acknowledged certificate with a sworn payment affidavit after 13 months from lien filing. The claimant must first receive 90 days' certified-mail notice, and must not have disputed full payment in writing.

4. Lien waivers (2A:44A-38). Waivers are void unless given in consideration for payment for work, services, materials or equipment; they are effective only upon and to the extent payment is actually received.

5. Residential Construction — Special Requirements. Every residential lien claimant must lodge the Notice of Unpaid Balance for record within 60 days of last furnishing and then serve it, generally pursue arbitration before lien filing, and keep the lien amount within the arbitrator's determination. A written alternative dispute-resolution agreement may affect the arbitration route.

6. 30-Day Owner Demand. Under N.J.S.A. 2A:44A-14(a)(2), the owner may require the claimant to commence an enforcement action within 30 days after receiving written notice by personal service or certified mail, return receipt requested; failure to do so forfeits enforcement rights.

7. Cash Deposits Go to Superior Court Clerk. While the lien claim itself is filed with the County Clerk, cash deposits under 2A:44A-31 are made with the Clerk of the Superior Court. Surety bonds, however, are filed with the County Clerk. This distinction is important.

8. NJ Certification vs. Affidavit. Under New Jersey Court Rule 1:4-4(b), a certification may be used in place of an affidavit if the signer states that willfully false statements subject the signer to punishment. Use the certification wording above for court submissions.

9. Community Associations. The CLL gives community associations standing alongside property owners to pursue lien discharge and file bonds. This is relevant for condominium and homeowner association properties.

10. Attorney's Fees for Invalid Claims. The CLL provides for recovery of "all court costs, and reasonable legal expenses, including attorneys' fees" against parties who file invalid or frivolous lien claims. This fee-shifting provision provides leverage in discharge proceedings.

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. All construction lien discharges should be reviewed by a licensed New Jersey attorney before filing. New Jersey law may change; verify all statutory citations before use.