Pre-lien Notice / Notice to Owner

NEW JERSEY

PRE-LIEN NOTICE / NOTICE TO OWNER

(“NOTICE OF UNPAID BALANCE AND RIGHT TO FILE LIEN”)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Certificate of Service

1. DOCUMENT HEADER

1.1 Title. Pre-Lien Notice / Notice to Owner (“Notice of Unpaid Balance and Right to File Lien”).

1.2 Parties.
 (a) “Claimant”: [CLAIMANT LEGAL NAME], a [STATE] [ENTITY TYPE], NJ Contractor Registration/Lic. No. [LICENSE #].
 (b) “Owner”: [OWNER LEGAL NAME] of the real property identified below.
 (c) “Prime Contractor” (if Claimant is a subcontractor/supplier): [PRIME CONTRACTOR NAME].

1.3 Project & Property.
 • Project Name/Description: [PROJECT NAME & SCOPE]
 • Street Address: [PROPERTY ADDRESS]
 • Legal Description (attach if necessary): [LEGAL DESCRIPTION OR BLOCK/LOT]

1.4 Effective Date. This Notice is effective as of [DATE] (“Effective Date”).

1.5 Governing Law & Jurisdiction. State of New Jersey; venue exclusively in the Superior Court of New Jersey, [COUNTY] County, Law Division.

2. DEFINITIONS

“Amount Due” means the unpaid contract balance of $[AMOUNT] for Work performed and/or Materials furnished through the Last Furnishing Date.

“Claim” means Claimant’s statutory right to record and enforce a construction lien pursuant to the New Jersey Construction Lien Law.

“Last Furnishing Date” means [MM/DD/YYYY], the last date on which Claimant furnished labor, services, equipment, or materials (“Work”) to the Project.

“Notice” means this Pre-Lien Notice / Notice of Unpaid Balance and Right to File Lien.

“Residential Project” means any project that improves or is intended to improve a one- or two-family dwelling or condominium unit (N.J. Stat. Ann. § 2A:44A-2).

“Work” has the meaning given in the Construction Lien Law and includes all labor, professional services, materials, equipment, and rentals furnished by Claimant to the Project.

3. OPERATIVE PROVISIONS

3.1 Notice of Unpaid Balance. Claimant hereby notifies Owner that the Amount Due for Work provided to the Project remains unpaid as of the Effective Date.

3.2 Statutory Right to Lien. Unless the Amount Due is paid or otherwise resolved, Claimant intends to file a Construction Lien Claim against the Property in accordance with applicable law.

3.3 Payment Demand & Deadline. Owner must remit full payment of the Amount Due (plus any accruing interest at the contract rate, or if none, the legal rate) within [10] calendar days after service of this Notice (“Demand Period”).

3.4 Conditions Precedent. If payment is made in good funds and within the Demand Period, Claimant shall issue an unconditional written waiver of lien rights up to the Amount Due.

4. REPRESENTATIONS & WARRANTIES

4.1 Claimant’s Representations.
 (a) Claimant is duly licensed, registered, and authorized to perform the Work.
 (b) The Amount Due is justly due and owing, has not been paid, waived, settled, or assigned, and no condition precedent to payment remains unsatisfied other than Owner’s remittance.
 (c) Claimant has complied in all material respects with the New Jersey Construction Lien Law, including timing, form, and service requirements.

4.2 Survival. The representations and warranties in this Notice survive payment until such time as Claimant’s statutory lien rights are fully extinguished.

5. COVENANTS & RESTRICTIONS

5.1 Claimant Covenants. Promptly upon receipt of cleared funds in the Amount Due (and any agreed interest), Claimant shall (i) execute and deliver a written waiver and release of lien rights for the Work covered by this Notice, and (ii) record any required discharge or cancellation.

5.2 Owner Covenants. During the Demand Period, Owner shall not transfer, convey, or further encumber the Property without (i) first satisfying the Amount Due, or (ii) establishing a bond or other statutory security to protect Claimant’s rights.

5.3 Further Assurances. Each Party shall execute and deliver any additional documents reasonably requested to effectuate the intent of this Notice.

6. DEFAULT & REMEDIES

6.1 Events of Default. Failure to pay the Amount Due within the Demand Period constitutes a default (“Default”).

6.2 Claimant Remedies Upon Default.
 (a) File and record a Construction Lien Claim for the Amount Due, together with permissible interest, fees, and costs.
 (b) Commence an action to foreclose the lien, seek judgment, and enforce payment through sale of the Property.
 (c) Recover reasonable attorney fees, court costs, and statutory interest as allowed by law.

6.3 Cure. Default may be cured only by full payment in certified funds or other method mutually agreed in writing by the Parties.

7. RISK ALLOCATION

7.1 Indemnification. None.

7.2 Limitation of Liability. Claimant’s total recoverable amount in connection with this Notice, inclusive of the lien claim, shall not exceed the value of Work actually performed and unpaid as of the Last Furnishing Date.

7.3 Force Majeure. Delays in payment attributable solely to an event of force majeure (e.g., declared natural disaster, act of terrorism, or governmental shutdown prohibiting payment) shall extend the Demand Period by the number of days of the force-majeure event, provided Owner gives written notice to Claimant within three (3) business days after becoming aware of the event.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Notice and any related lien foreclosure action shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to its conflict-of-laws principles.

8.2 Forum Selection. Exclusive venue shall lie in the Superior Court of New Jersey, [COUNTY] County, Law Division.

8.3 Arbitration. Not applicable. However, for Residential Projects, pre-claim arbitration mandated under the New Jersey Construction Lien Law shall be completed prior to recording a Lien Claim.

8.4 Jury Trial Waiver. Not applicable.

8.5 Injunctive Relief. Nothing herein limits Claimant’s right to seek provisional or injunctive relief necessary to protect or enforce the lien claim, including but not limited to orders to preserve Construction Funds.

9. GENERAL PROVISIONS

9.1 Amendments & Waivers. Any amendment or waiver of this Notice must be in writing and signed by Claimant.

9.2 Assignment. Claimant may assign its rights under this Notice only together with any assignment of the underlying receivable or contract rights; Owner may not assign obligations hereunder without Claimant’s written consent.

9.3 Successors & Assigns. This Notice binds and inures to the benefit of the Parties and their respective successors and permitted assigns.

9.4 Severability. If any provision of this Notice is held unenforceable, the remaining provisions shall remain in full force and effect and shall be construed to fulfill the original intent to the maximum extent permitted by law.

9.5 Integration. This Notice constitutes the complete and exclusive statement of Claimant’s current notice of unpaid balance and supersedes all prior or contemporaneous oral or written notices relating to the Amount Due.

9.6 Counterparts; Electronic Signatures. This Notice may be executed in any number of counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures transmitted electronically or by facsimile shall be deemed original for all purposes.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Claimant executes this Notice as of the Effective Date set forth above.

CLAIMANT:
[CLAIMANT LEGAL NAME]
By: _______________________________
Name: [AUTHORIZED SIGNATORY]
Title: [OFFICER/MANAGER TITLE]
Date: _____________________________

STATE OF ____________ )
COUNTY OF __________ ) ss.:

On this ___ day of __________, 20__, before me, the undersigned Notary Public, personally appeared ____________________, who proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to this instrument and acknowledged executing same in an authorized capacity.

__________________________________
Notary Public
My Commission Expires: _____________

11. CERTIFICATE OF SERVICE

I, [NAME OF PERSON SERVING NOTICE], certify under penalty of perjury that I served the foregoing Notice on [MM/DD/YYYY] by:

☐ Certified Mail, Return Receipt Requested, to the Owner’s address set forth above;
☐ Personal Delivery with signed receipt; or
☐ Other method permitted by N.J. Ct. R. 4:4-4 and the Construction Lien Law, namely [DESCRIBE].

__________________________________
Signature
Date: _____________________________

END OF DOCUMENT