New Jersey Notice of Unpaid Balance & Construction Lien — N.J.S.A. § 2A:44A-20 / § 2A:44A-21 / § 2A:44A-6 County Clerk Filing Guide (2026)
✓ Verified against New Jersey statutes · Reviewed August 2026 · By Michael Evan — Founder · 50 states · 799 rules
New Jersey mechanics lien deadlines at a glance
Preliminary Notice
NUB — Notice of Unpaid Balance
Mechanics Lien
90 days — From last date of furnishing
Enforcement
1 year — From filing
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What Is the New Jersey Construction Lien Framework and How Does the Lien Workflow Operate?
New Jersey's construction lien framework is the Construction Lien Law (CLL) at N.J.S.A. 2A:44A-1 et seq., comprehensively amended effective January 5, 2011. The workflow forks on a single threshold question: is the project residential or non-residential (commercial)? On a commercial project, the claimant optionally lodges a § 2A:44A-20 Notice of Unpaid Balance (NUB) to lock priority, lodges the lien claim for record with the county clerk within 90 days of last work under § 2A:44A-6, serves the lien on the owner within 10 business days under § 2A:44A-7, and commences a Superior Court foreclosure within 1 year under § 2A:44A-14. On a residential project, the claimant must first run the mandatory § 2A:44A-21 sequence — NUB within 60 days, a demand for AAA arbitration within 10 days, and the lien claim within 10 days of the arbitrator's award and no later than 120 days — before serving and enforcing. New Jersey is distinctive in three respects: the residential NUB-and-arbitration prerequisite, the NUB as a priority-only tool that is not a lien, and the § 2A:44A-9/-10 lien-fund cap.
Who May Claim a New Jersey Construction Lien
Under N.J.S.A. § 2A:44A-3, any contractor, subcontractor, or supplier who provides work, services, material, or equipment pursuant to a written contract is entitled to a lien for the value of that work based on the contract price. The written-contract requirement is a New Jersey threshold — § 2A:44A-2 defines a contract as an agreement in writing, so an oral agreement generally supports no lien. Lien rights extend to general contractors, subcontractors, suppliers (including certain suppliers to suppliers within the first tiers since the 2011 amendments), design professionals (architects, engineers, and land surveyors), and construction managers. New Jersey limits the tiers that hold lien rights: a remote sub-sub-subcontractor or a supplier too far down the chain may have no lien rights at all, and every claim is subject to the § 2A:44A-9/-10 lien-fund cap.
N.J.S.A. § 2A:44A-20 Notice of Unpaid Balance and the § 2A:44A-21 Residential Arbitration Sequence
The Notice of Unpaid Balance and Right to File Lien (NUB) under § 2A:44A-20 is a priority tool. Lodging it for record does not constitute filing a lien and does not extend the lien-filing deadline; its sole function is to fix the claimant's priority date so a lien later filed primes mortgages, conveyances, and leases recorded after the NUB. On a commercial project a claimant may lodge a NUB strategically and need not serve it. On residential construction, the NUB is the first step of a mandatory three-step sequence under § 2A:44A-21: (1) lodge the NUB within 60 days of last work; (2) within 10 days, serve a demand for arbitration and file it with the American Arbitration Association, where the arbitrator determines the validity and amount of the prospective lien; and (3) lodge the lien claim within 10 days of the arbitrator's determination but no later than 120 days from last work. The same arbitrator hears related NUBs on the same residential construction, with consolidation available on request.
N.J.S.A. § 2A:44A-6: The 90-Day / 120-Day County-Clerk Filing and the § 2A:44A-14 One-Year Enforcement Window
Under N.J.S.A. § 2A:44A-6, on a non-residential project the lien claim must be lodged for record within 90 days after the last date work was provided; on a residential project, within 120 days of last work, after completing the § 2A:44A-21 NUB-and-arbitration sequence. The lien claim is lodged with the clerk of the county where the property lies and, under § 2A:44A-8, must be signed, acknowledged, and verified by oath before a notary, stating the claimant's name and address, the owner, the contractor or subcontractor, a property description (block and lot, municipality, county), the amount claimed (the earned unpaid contract price), and the first and last work dates. An action to enforce — a foreclosure complaint — must be commenced within one (1) year of last work in the Superior Court under § 2A:44A-14; an owner's written demand to commence suit compresses that to 30 days. Both windows run from last work, not from when payment became due. New Jersey has 21 counties; the largest markets are Bergen, Essex (Newark), Hudson (Jersey City), Middlesex, Monmouth, Ocean, Union (Elizabeth), Morris, Camden, Mercer (Trenton), Passaic (Paterson), Somerset, Burlington, and Atlantic (Atlantic City).
The New Jersey Lien Fund: § 2A:44A-9 / § 2A:44A-10 and the § 2A:44A-15 Overstatement Trap
New Jersey's most consequential limitation is the lien fund. Under § 2A:44A-9 and § 2A:44A-10, a construction lien attaches only to the amount the owner still owed the contractor — or, for a subcontractor's or supplier's claim, the amount owed up the chain — when the lien was served, less prior perfected liens. The lien fund caps the claim regardless of how much the claimant is owed: a subcontractor owed $100,000 has no enforceable lien beyond what the owner still owed the GC when the lien was served, and if the owner already paid the GC in full against valid pay applications, the lien fund may be zero. This makes timing decisive and makes the parallel contract and New Jersey Prompt Payment Act (N.J.S.A. 2A:30A-1 et seq.) remedies essential. It also drives the § 2A:44A-15 overstatement rule: a lien without basis, willfully overstated, or filed in violation of the statute forfeits ALL lien rights and exposes the claimant to the owner's costs, attorney's fees, and damages.
Service, Priority, Discharge, and Enforcement
Under § 2A:44A-7, within 10 business days after lodging the lien claim, the claimant must serve a copy on the owner — and, for a subcontractor or supplier, also on the contractor — by personal service or registered/certified mail with regular mail; a recorded but unserved lien is unenforceable until served. A New Jersey lien is generally subordinate to mortgages, conveyances, and leases recorded before the lien (or before a NUB) and to purchase-money and certain construction mortgages; a timely § 2A:44A-20 NUB fixes the claimant's priority date against later-recorded instruments. Under § 2A:44A-30 and § 2A:44A-31, an owner or contractor may discharge the lien from the property by posting a surety bond or cash deposit (the lien transfers to the bond). The lien is enforced by a foreclosure action in the Superior Court of the county where the property lies, commenced within one year of last work under § 2A:44A-14 — or within 30 days of an owner's written demand. A claimant who forfeits the lien and fails to discharge it is liable for the owner's costs and reasonable attorney's fees.
Frequently Asked Questions
What is the New Jersey Notice of Unpaid Balance and Right to File Lien (NUB) under N.J.S.A. 2A:44A-20?
Under N.J.S.A. 2A:44A-20, a Notice of Unpaid Balance and Right to File Lien (NUB) is a document a claimant lodges for record with the county clerk to fix its priority date. The NUB is NOT a lien claim — lodging it does not constitute filing a lien and does not extend the lien-filing deadline. Its function is priority: a lien claim later filed gains priority over mortgages, conveyances, leases, and other interests recorded AFTER the NUB. On commercial projects the NUB is optional and used to lock priority; on residential construction it is mandatory and is the first step of the § 2A:44A-21 sequence. The NUB must identify the claimant and address, the owner, the contractor or subcontractor, the property (block and lot, municipality, county), the contract date and price, the work, amounts paid, and the unpaid balance, and must be signed and verified. A standalone commercial NUB need not be served.
How does the New Jersey residential construction lien process under N.J.S.A. 2A:44A-21 work?
Residential construction carries a three-step procedure that commercial projects do not. First, lodge a Notice of Unpaid Balance and Right to File Lien (NUB) for record within 60 days after last work. Second, within 10 days of filing the NUB, serve a demand for arbitration on the owner and file it with the American Arbitration Association (AAA); the arbitrator determines the validity and amount of the prospective lien. Third, lodge the lien claim within 10 days after receiving the arbitrator's determination, but no later than 120 days after last work. The same arbitrator hears related NUBs on the same residential construction, and consolidation may be requested in the demand or by letter within 5 days. Missing the 60-day NUB, skipping arbitration, or filing after 120 days bars the residential lien.
When must a New Jersey construction lien claim be filed, and where?
Under N.J.S.A. 2A:44A-6, on commercial projects the lien claim must be lodged for record within 90 days after last work; on residential projects, within 120 days after last work, after completing the § 2A:44A-21 NUB-and-arbitration sequence. The lien claim is lodged with the clerk of the county where the property lies — New Jersey has 21 counties; the largest markets are Bergen, Essex (Newark), Hudson (Jersey City), Middlesex, Monmouth, Ocean, Union (Elizabeth), Morris, Camden, Mercer (Trenton), Passaic (Paterson), Somerset, Burlington, and Atlantic (Atlantic City). Under § 2A:44A-8 the claim must be signed, acknowledged, and verified by oath before a notary and state the claimant's name and address, the owner, the contractor or subcontractor, a property description (block and lot, municipality, county), the amount claimed (the unpaid earned contract price), and the first and last work dates. The deadline runs from last work.
What is the New Jersey 'lien fund' and how does it limit recovery?
New Jersey is an unpaid-balance, lien-fund state. Under N.J.S.A. 2A:44A-9 and 2A:44A-10, a lien attaches only to the 'lien fund' — the amount the owner owed the contractor (or up the chain) when the lien was served, less prior perfected liens. The lien fund caps the claim regardless of how much the claimant is owed: a subcontractor owed $100,000 has no enforceable lien beyond what the owner still owed the GC when the lien was served. If the owner already paid the GC in full against valid pay applications and waivers, the lien fund may be zero and the lien worthless against the property — even though the claimant is genuinely unpaid. This is why timing the lien (and a NUB to lock priority) before further disbursements, and pursuing the contract and Prompt Payment Act remedies in parallel, are central to New Jersey strategy. The lien-fund calculation is the most litigated issue in New Jersey construction-lien disputes.
How long does a New Jersey construction lien last and when must suit be filed?
Under N.J.S.A. 2A:44A-14, the claimant must commence a foreclosure action in the Superior Court of the county where the property lies within one (1) year of the last date work was provided. An owner, contractor, or subcontractor may serve a written demand to commence suit, which compresses the deadline to 30 days from receipt. A claimant who fails to sue within the applicable window forfeits all rights to enforce the lien and must immediately discharge it of record; a claimant who forfeits and fails to discharge is liable for all court costs and reasonable legal expenses, including attorney's fees. The one-year deadline runs from last work and is not extended by partial payments or negotiations, so a claimant who files and then waits for settlement can lose the lien by inaction.
What happens if a New Jersey lien claim is overstated or filed without basis?
Under N.J.S.A. 2A:44A-15, if a lien claim is without basis, willfully overstated, or not filed in substantially the form, manner, or time required by the statute, the claimant forfeits ALL claimed lien rights and is liable for the reasonable expenses, including attorney's fees, the owner, contractor, subcontractor, or any other claimant incurred in defending against or discharging the lien. This is broader than the deadline-forfeiture rule in § 2A:44A-14: a procedurally defective lien (wrong form, wrong county, not verified, not served within the 10-business-day § 2A:44A-7 window) or a substantively inflated one (claiming more than the earned unpaid contract amount, or beyond the lien-fund cap) can be struck and trigger a fee award. New Jersey courts scrutinize lien amounts against the contract and lien fund, so a claimant should reconcile the amount to documented earned, unpaid value and never inflate it for leverage.
How does New Jersey handle public works and federal projects?
No construction lien attaches to public property. On New Jersey state, county, municipal, school-district, and authority public works (NJDOT and Turnpike Authority highway work, NJ Transit, public colleges, K-12 schools, and Newark / Jersey City / Trenton public projects), pursue a lien on public funds under the Municipal Mechanics' Lien Law at N.J.S.A. 2A:44-125 et seq. (written notice to the public agency) and a claim against the prime's payment bond under the Bond Act at N.J.S.A. 2A:44-143 et seq. On federal projects, the federal Miller Act at 40 U.S.C. § 3131 et seq. preempts state lien rights — Joint Base McGuire-Dix-Lakehurst (the nation's only tri-service joint base across Burlington and Ocean counties), Picatinny Arsenal (Morris County — the U.S. Army DEVCOM Armaments Center), Naval Weapons Station Earle (Monmouth County), U.S. Coast Guard Training Center Cape May, the FAA William J. Hughes Technical Center at Atlantic City, Gateway National Recreation Area at Sandy Hook, and the East Orange and Lyons VA Medical Centers.