Construction Lien Release (Recorded Lien Cancellation)

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. More than one (1) year has elapsed since the date the lien claim was filed, and the Lien Claimant has failed to commence suit or receive written consent from the owner to extend.

☐ 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 of Discharge (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. Pursuant to N.J.S.A. 2A:44A-30, the undersigned submits this duly acknowledged certificate to discharge the 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.)

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-10, a construction lien claimant must commence an action to establish the lien or receive written consent to extend within one (1) year from the date the lien claim was filed. The lien was filed on [__/__/____], and more than one year has elapsed without suit or extension. The lien claim is forfeited.

☐ 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 Notice of Unpaid Balance requirement under N.J.S.A. 2A:44A-20 and/or the mandatory arbitration requirement under N.J.S.A. 2A:44A-21.

☐ 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. Under N.J.S.A. 2A:44A-30, if you fail to file a discharge and 13 months have elapsed since the lien filing date, I may submit my own certificate of discharge to the County Clerk.

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 Regarding N.J.S.A. 2A:44A-30: If you fail to file a discharge and 13 months pass from the date of the lien filing, the owner may file a certificate discharging the lien without your consent.

PART FIVE: MOTION TO DISCHARGE CONSTRUCTION LIEN CLAIM

(Filed in New Jersey Superior Court)

Caption

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

Docket No. [________________________________]

Notice of Motion

PLEASE TAKE NOTICE that on [__/__/____], at [____] a.m./p.m., or as soon thereafter as counsel may be heard, the undersigned will apply to the Superior Court of New Jersey, Law Division, [________________________________] County, for an order discharging the construction lien claim filed by Defendant against Plaintiff's property.

Brief in Support of Motion

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 (2A:44A-10). Defendant failed to commence an action to establish the lien within one (1) year from the date the lien claim was filed, or within 30 days of receiving written notice from the owner requiring commencement of suit. The lien claim is therefore forfeited.

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

☐ Residential Exemption — Non-Compliance with 2A:44A-20/21. The lien involves a residential construction contract, and the Defendant failed to comply with the Notice of Unpaid Balance (2A:44A-20) and/or mandatory arbitration (2A:44A-21) requirements.

☐ 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 respectfully moves this Court to:

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/Movant
[________________________________]
[________________________________]
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 Motion.

2. I have reviewed the statements contained therein and certify that they are true and correct to the best of my knowledge, information, and belief.

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 (defined as contracts for improvement of real property consisting of no more than four dwelling units):

1. Notice of Unpaid Balance and Right to File Lien (2A:44A-20)

Before filing a lien claim on a residential property, a subcontractor or supplier must first serve a Notice of Unpaid Balance and Right to File Lien on the property owner. This notice must be served within:

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

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 properly served within 60 days?

☐ Was the matter submitted to arbitration as required?

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

Failure to comply with any of these requirements may render the residential lien claim void and subject to discharge on motion.

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's Self-Help After 13 Months (2A:44A-30). This is a powerful and unique provision: if the lien claimant fails to discharge a paid lien, the owner can file a duly acknowledged certificate discharging the lien after 13 months have elapsed from the filing date, without court order. This makes New Jersey one of the most owner-friendly states for clearing stale liens.

4. Advance Waivers Are Void (2A:44A-39). New Jersey prohibits advance waivers of lien rights. A waiver is effective "only upon and to the extent that the payment is actually received." This means pre-construction lien waivers have no legal effect.

5. Residential Construction — Special Requirements. Liens on residential properties (4 or fewer dwelling units) require: (a) a Notice of Unpaid Balance served within 60 days of last furnishing, (b) mandatory arbitration before lien filing, and (c) the lien claim amount must comply with the arbitrator's determination. Failure to comply with any of these renders the lien voidable and provides strong grounds for discharge.

6. 30-Day Owner Demand. Under 2A:44A-10, the owner can serve written notice requiring the claimant to commence suit within 30 days, or the lien is forfeited. This is a powerful tool for forcing resolution.

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, certifications made under penalty of perjury may be used in lieu of affidavits for most court filings. Use "certification" language rather than "affidavit" for New Jersey 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.