Landlord's Liens

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Landlord Lien for Rent

New Jersey gives a landlord of commercial premises a lien for unpaid rent or other charges against the personal property of the commercial tenant. This lien is a statutory lien provided for by N.J. STAT. ANN. 2A:42-1 to 42-3.

A landlord's lien is limited to one year's unpaid rent. N.J. STAT. ANN. 2A:42-1.

In order to enforce the lien, the landlord must, within ten days after the removal of the goods by virtue of execution, attachment or other process, give the sheriff notice of such process, and in such notice, must include the amount of rent in arrears, and make a claim for that rent. See N.J. STAT. ANN. 2A:42-2

Landlord's Lien on Goods

New Jersey further provides that a landlord receives a lien for rent due upon all of the tenant's goods and chattels that are located on the premises limited to one year's unpaid rent. N.J. STAT. ANN. 2A:19-31.

Under a landlord's lien on the assignor's goods, the landlord may seize goods or chattels within 40 days after the goods or chattels have been removed from the premises. N.J. STAT. ANN. 2A:19-32.

A rentor is entitled to a lien on machinery and other chattels to the extent of the of unpaid rent. This lien has priority over any title, lien, interest, mortgage, judgment or other encumbrance created or acquired after machinery or other chattels are placed in the premises for a maximum of 6 months. N.J. STAT. ANN. 2A:44-165 to 2A: 44-168."

"The ""landlord's lien"" provides ""that no goods or chattels of a tenant, which are kept upon leased real estate, may be taken by virtue of any execution, attachment or other process, unless the party suing out of the process, prior to removing such goods or chattels, pays the landlord all unpaid rent, not exceeding one year's rent."" See Hartwell v. Hartwell Co., Inc., 167 N.J. Super. 91 (Ch. Div. 1979). This lien is a statutory right to a preference in payment over certain other creditors. See Hartwell, 167 N.J. Super. at 97. The statute establishes rights only as between the landlord and any non-lien holding creditor of the tenant following judicial process. See Farmers & Merchants National Bank v. Boymann, 155 N.J. Super. 120, 124-125 (Cty. Ct. 1977).

A landlord with this type of lien must file an action in the Chancery Division of the Superior Court of New Jersey, and show cause that is supported by a verified complaint or affidavit. See Callen v. Sherman, Inc., 92 N.J. 114 (1983); In emergency situations, however, tenants may request a post-deprivation hearing. See id.; see also Callen v. Sherman's Inc., 92 N.J. 114 (1983). "

The landlord's lien is junior to a perfected security interest under the Uniform Commercial Code. See N.J. STAT. ANN. 2A:42-1; Hartwell v. Hartwell Co., Inc., 167 N.J. Super. 91, 101 (Ch. Div. 1979). This priority exists even when perfection occurs after the property is placed on the premises. See id. A renter's lien, on the other hand, has priority over a perfected security interest. See N.J. STAT. ANN. 2A:44-166; see also Gibralter Fastners Corp. v. Slapo, 23 N.J. 459 (1957). This priority, however, does not extend to priority over purchase money security interests, if the purchase money security interest attaches before the machinery or chattels are placed on the premises. See In re Holly Knitwear, Inc., 140 N.J. Super. 375 (App. Div. 1976). A landlord's lien on assignor's goods is identical to those of a renter's lien. See id.