New Jersey Lien Waiver Rules
- Rules At A Glance
- Top Links
No Specific Form
New Jersey law does not provide or require specific forms for lien waivers.
Notarization Not Required
New Jersey lien waivers do not need to be notarized.
Cannot Waive Rights in Contract
New Jersey does not allow lien rights to be waived in advance, and any such wavier is void and unenforceable.
Cannot Waive Rights Before Payment
All waivers prior to receiving payment are prohibited by NJ statutory law.
Lien waivers are pretty complex documents. But they are also unassuming because of how frequently they get exchanged on construction jobs across the country, and in New Jersey. A lien waiver is basically a receipt that payment has been made for work or materials on a job. These documents are exchanged at the time of payment, and commonly attached to subcontractor pay applications or vendor invoices.
There are different types of lien releases for different types of situations. And these documents have significant consequences for everyone on a job — as it connects directly to everyone’s right to cash! Also, one pesky aspect of lien waivers is that the process of sending, requesting, tracking, and collecting lien waivers is an administrative pain that slows down the payment on a project.
Knowing everything you can about lien waivers will allow you to make your process faster. And if your process is faster, your cash will move faster; and that’s good news for everyone on the project!
- For more on lien waivers in general, see: The Ultimate Guide to Lien Waivers in Construction
New Jersey lien waiver laws
New Jersey lien waivers are unregulated, in terms of the form or specific language necessary to make the waiver effective, but they are regulated with respect to when a lien waiver can be given and be effective.
New Jersey does not provide lien waiver (also sometimes called lien release) templates in its statutes, or provide clear information specifying how a lien waiver should be drafted. Participants on New Jersey construction projects have a lot of freedom to choose the exact format and language of lien waivers.
In contradiction to the basic free-for-all regarding the waiver language, there are strict limitations to when lien waivers can be requested and provided. Since protecting lien rights is often public policy many states have protections in place to make sure those rights aren’t unfairly side-stepped. In New Jersey, all waivers prior to receiving payment are prohibited by NJ statutory law, and any such waiver is void and unenforceable.
In New Jersey, like everywhere, construction participants should pay careful attention to lien waivers. They are exchanged all the time, but they can have serious consequences. The resources, forms, guides, and frequently asked questions about New Jersey Lien Waivers on this page will help you get it right.
