New Jersey Notice by Contractor to Claimant of Dispute of Claimant's Claim Described in Stop Notice or Notice to Withhold Funds to Holder of Funds

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US-01039BG
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Description

The right to execute and deliver a stop notice or a notice to withhold funds is a remedy closely related to a mechanic's lien. When a stop notice or a notice to withhold funds is received by an individual or a firm holding the construction funds for a project, the individual or firm must withhold from its disbursements sufficient money to satisfy the stop notice claim. In this form, the contractor is informing the claimant that he is contesting complainant's claim and sending a copy of this notice to the holder of the constructions funds.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

Contractors & suppliers have strong lien rights in New Jersey. If a contractor or supplier isn't paid on an New Jersey job, they can turn to filing a lien to speed up payment and protect themselves. However, there are specific requirements and rules that must be followed.

Waiver of Lien Most of the standard form building contracts make provision for the Employer to provide a payment guarantee to the Contractor in return for which the Contractor waives his lien over any work done in terms of that contract.

The purpose is to discharge the original Construction Lien Claim of record. Note: A Construction Lien Claim may also be discharged by Court Order or by posting of Surety Bond or depositing 110% of the amount of the Lien Claim with the Clerk of the Superior Court of New Jersey.

A mechanic's lien is a legal claim against a home or other property. Mechanic's liens are typically used by subcontractors and suppliers when they haven't received payment for improvements they made to a property. They are a way to seek payment for the work done remodeling or improving a home.

In most states (37 of them), contractors and suppliers are generally allowed to file a lien even if they don't have a written contract. In other words, the contractor could be working off on a verbal agreement, and yet still have the ability to file a lien claim.

In New Jersey, you fill out a form called a Statement for Docketing to obtain a judgment lien. A lien gives you personal interest in the property of a debtor who owes you money. Once your lien is filed, the debtor cannot sell his property with clear title unless he pays the amount owed to you.

Mechanics liens are valid for 1 (one) year after last furnishing in New Jersey unless the lien is extended. If the owner files a notice to commence an action, you may only have 30 days to enforce your lien claim.

Deliver your completed lien form to the clerk's office in the New Jersey county where the property is located, and pay the filing fee. You must deliver a copy of the recorded construction lien to the property owner within 10 days of filing.

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New Jersey Notice by Contractor to Claimant of Dispute of Claimant's Claim Described in Stop Notice or Notice to Withhold Funds to Holder of Funds