Legal Question in Construction Law in New Jersey

Re: Sub Contractor payments

The subcontractor should not put a lien on the property if he knows that the prime has been fully paid. That does not mean that he won't do so. If he does put a lien on, it is easily removed if you can show that the prime has been fully paid. If, on the other hand, you have not paid the prime in full, you should withhold further payment until the prime and sub get things straight. If you pay the prime knowing that the sub has not been paid and later find that there was a lien filed at the time payment was made, you could become liable to pay twice. That's not good.

If you have any doubts, consult your lawyer.

See also: http://info.corbettlaw.net/lawguru.htm