New Jersey construction / mechanics lien issue

[Scott Brown]

Hello everyone.

I purchased a property I intended to flip back in June. This is a residential, SFH, 2 story colonial about 1200 SF.

I hired a GC to handle the renovations from top to bottom and for the most part, everything went off without a hitch in the early-mid stages with the exception of some delays that may or may not have been avoidable. 

Fast forward to the end stages.  GC was paid for the bulk of the work but the final draw was withheld due to problems with the new central air system (does not work now on the 2nd floor), some electrical issues with switches controlling outlets that should be independent and failure of the GC to obtain all the necessary permits from the town.   When I spoke with GC and let him know that I was going to withhold last payment, he advised me that he would be filing a mechanics lien against the property.  In NJ, they do not call these mechanics liens any longer...they are called construction liens.  I let him know that I understood this and he had to do what he had to do.  I called the county clerk a few times to find out if and when this was filed and they finally told me that it was filed by GC on 9-25-17.  I went to the county website and confirmed this myself and retrieved a copy of the form he filed "construction lien form".    Everything looked to be in order except for the dollar amounts he entered.   The contracted amount was for $51K and the total contracted amount he claims is $60K.  In the section "contract amount paid to date", he entered the amount $59K.  This amount in reality is less than what I have actually paid him.  The total lien claim amount he is seeking is $15500.  I have gotten quotes from other contractors on the amount that it would cost me to get everything corrected that my original GC could/would not correct.  The amount is roughly $7K.

I have researched the process for the filing of a construction lien in NJ and everything I have read tells me that its a multi step process beginning with filing a "notice of unpaid balance" within 60 days of the last day there was work done at the property.  Next is the GC needed to have me served with this notice and then within 30 days of me being served, we would go to arbitration to determine if there was enough evidence to allow the GC to move forward with actually filing the claim.  I think they would have 120 days to do this.  

In reality, what the GC was allowed to do was bypass all the steps and take the lien claim form to the county and file it with the clerk of courts and it is now part of the public record and clouding the title and possibly preventing me from selling the home without paying him an amount that is over what is actually owed.  I called the clerk of courts and not surprisingly, they tell me that they file like that all the time and the only way I can get it discharged is by having the GC file the discharge release.  Clerk has no idea what I am referring to when I attempt to describe the legal process that should have been followed.  I understand that the clerk is just doing their job but its extremely frustrating.

Sorry for the long post...I think I covered the bulk of it.  In closing, I am looking to get the lien removed as quickly as possible.  Hopefully the group here has some suggestions on how this could be remedied.  

Thanks in advance!