New Jersey Lien: A Complete Guide to Liens in the State

In New Jersey, a lien is a type of property claim that allows a party to secure repayment of a debt or obligation. After it is filed, a lien gives creditors the right to stop property owners from selling, refinancing, or transferring ownership until the debt is cleared.

What Is a Lien in New Jersey?

In New Jersey, a lien is a claim against a debtor's property. A lien grants creditors the legal right to hold a debtor's property until a debt is fully paid. For creditors, liens are a crucial means of ensuring they receive payment.

Liens can be placed on real property, such as homes, land, and commercial buildings, or on personal property, including vehicles, equipment, or business assets.

Once recorded, liens become public record. This means that potential buyers, lenders, and title companies are made aware of any existing debts.

For those who own property, having a lien can complicate the process of refinancing or selling their property. For buyers, checking for liens is an essential step in their research before making a purchase.

Types of Liens in New Jersey

The most common liens filed in New Jersey include:

1. Property Tax Liens

A tax lien is a legal claim made by a government tax authority on real estate because of unpaid property taxes. Once the lien is placed, the municipality or township can sell a tax lien certificate to recover the overdue amounts.

2. Mechanics or Construction Liens

This is a legal claim against a property for money owed for the value of work, services, materials, or equipment provided according to a contract. In New Jersey, there are strict rules about notice and filing deadlines that must be followed.

3. Judgment Liens A judgment lien is a legal claim that a creditor files against a debtor's property once a court has ruled in the creditor's favor.

4. Municipal Liens

These types of liens are put on a property because of unpaid municipal services or breaking local laws. They can come from unpaid fines related to zoning problems, issues with property maintenance, or other violations. The main goal of these liens is to make sure property owners follow local regulations. In New Jersey, municipal liens take precedence over all previous or future transfers and claims on the land.

How to Search for Liens in New Jersey

In New Jersey, lien records are public information. This means that anyone can request access to a judgment or lien information. Common ways to obtain lien records include:

• County Clerk or County Register Offices: Each of the 21 counties in New Jersey maintains records of property and lien filings. You can search these records by name, address, or parcel number.
• New Jersey County Online Systems: Counties such as Bergen, Essex, and Middlesex offer online access to lien and property records.
• New Jersey Judiciary Case Search: This portal provides online access to judgment liens across New Jersey with ease.
• Title Companies and Third-Party Services: These platforms are often used to conduct comprehensive lien searches before buying a property.

Lien filings typically include the lienholder’s name, amount owed, filing date, and property description.

Lien Records in Major New Jersey Cities

Most lien records are created and maintained at county offices. As such, it is always best to check with the specific county office for ways to access records:

• Newark (Essex County): Essex County Register manages lien and property filings. Anyone interested can access lien records online via the Register’s website.
• Jersey City (Hudson County): The Hudson County Register of Deeds offers lien search services online and in person.
• Paterson (Passaic County): Passaic County Clerk maintains lien and property records. You can search records online via the clerk's website or in person at the local office.
• Elizabeth (Union County): Union County Clerk provides access to property and lien records. Interested persons can access records online or in person.
• Edison (Middlesex County): This area is included in the Middlesex County system.

In New Jersey, every county has its own rules about fees, certified copies, and the availability of lien records online.

How Long Does a Lien Stay on Property in New Jersey?

Lien duration in New Jersey depends on the lien type:

• Property Tax Liens: In New Jersey, property tax liens remain active until they are paid off or the property is sold at a tax sale. However, the state allows a redemption period of 2 years.
• Mechanic’s Liens: Mechanic's liens must be enforced within 1 year of filing. Failure to execute the lien within the stipulated time frame renders the lien invalid.
• Judgment Liens: Judgment liens are valid for 20 years in New Jersey.
• Mortgage Liens: These liens remain active until the mortgage loan is fully satisfied.

How to Remove a Lien in New Jersey

To remove a lien in New Jersey, you must either pay the debt or challenge the lien’s validity. Common methods include:

1. Paying the Debt in Full: After you have paid the debt, ensure that the lienholder provides a statement of release. This must be recorded with the county recorder.
2. Negotiating a Settlement: You can propose partial payment or set up a repayment plan that is favorable to both parties. Once you fulfill the requirements of the payment plan, the creditor may issue a lien release. This document will state that you have satisfied the lien.
3. Court Petition: Property owners can file a petition to challenge fraudulent, invalid, or incorrectly filed liens.
4. Recording a Discharge or Satisfaction: Even after the debt is paid, property owners should make sure the lienholder records the release to clear the title of the property. If a release is not recorded, liens could still show up in public records even after the debt has been settled.

This article has covered the various kinds of liens in New Jersey, how to look them up, how long they last, and the process for getting rid of them, which is important for property owners, buyers, and lenders. However, New Jersey has strict deadlines and rules for redemption, so collaborating with a county clerk, title company, or attorney is crucial to ensure that liens are managed correctly. By handling this properly, property owners can maintain clear property titles and have smooth real estate transactions.