In Pennsylvania, contractors and suppliers who aren’t paid for their work on a construction project can safeguard their payment by filing a mechanic’s lien. This legal mechanism grants them a security interest in the property, ensuring they have a claim for unpaid work or materials. The significance of a mechanics lien Pennsylvania lies in its priority over other types of liens and the procedural requirements for filing and enforcing it.
At CRM Lien Services, we specialize in ensuring you get paid quickly and reliably. We can prepare and file mechanics liens for you, considering Pennsylvania mechanics lien law and state-specific rules and regulations.
This guide details the essential rules, requirements, and deadlines for properly filing a mechanics lien in Pennsylvania.
Key Takeaways
- Mechanics Lien Filing is Essential for Payment Security: Filing a mechanics lien in Pennsylvania provides contractors and suppliers with a legal mechanism to secure payment by placing a lien on the property.
- Strict Compliance with Deadlines and Requirements: Pennsylvania’s mechanics lien laws are strictly enforced, with specific deadlines and detailed requirements that must be met to ensure the lien is valid.
- Expert Assistance Simplifies the Process: Navigating the complexities of Pennsylvania mechanics lien laws can be challenging, but services like CRM Lien Services offer expertise and support to ensure your lien is filed correctly, protecting your payment rights effectively.
- Consult a Lawyer Early in the Lien Filing Process: Consulting a lawyer early in the lien filing process is crucial to prevent critical mistakes that could affect property rights and finances. Both contractors and property owners should seek legal advice to navigate the intricacies of lien laws effectively.
Who Can File a Pennsylvania Mechanics Lien?
In Pennsylvania, the right to file a mechanic’s lien is granted to second-tier subcontractors and suppliers with $500 or more claims. This means those who have contracts directly with the property owner, the general contractor, or a subcontractor engaged by the general contractor are entitled to lien rights. Claimants must document the type and price of labor or materials to support their claims effectively.
Furthermore, design professionals, such as architects and engineers, must directly contract with the property owner and contribute additional services, like overseeing the construction or repair, to qualify for mechanics lien rights.
Can I File a Pennsylvania Mechanics Lien If I Am Unlicensed?
Pennsylvania does not have a specific licensing requirement to file a mechanics lien. However, performing work without a state-required license is generally not advisable.
When Is the Deadline to File a Pennsylvania Mechanics Lien?
In Pennsylvania, the deadline to file a mechanics lien is 6 months from the claimant’s last day of providing labor or materials to the project. This strict deadline cannot be extended by performing minor or punch list tasks. Additionally, if a subcontractor receives a notice of a rule to file a lien claim, they must file the mechanics lien within 30 days.
If the property is conveyed in good faith and for valuable consideration prior to a claim being filed, the lien rights are forfeited.
What Information Should Be Included in a Pennsylvania Mechanics Lien?
The required information for filing a mechanics lien claim in Pennsylvania is specified under 49 P.S. §1503, which includes:
- Claimant’s name and whether they are a contractor or subcontractor
- Owner’s name and address
- The last date labor or materials were provided to the project
- Name of the hiring party
- For subcontractors: the date a preliminary notice was served (if required) and the date the notice of intent was served
- For contractors: if the contract was for a fixed price, a description of the contract, names of the parties, and the contract date
- Description of the labor or materials provided and the prices charged for each
- The lien amount
- A description of the property claimed, emphasizing the importance of properly identifying the property for legal identification in lien proceedings
Do I Need to Send Notice That the Lien Has Been Recorded?
Yes, the property owner must be served with a notice of a lien claim within one month of filing the claim with the prothonotary. This notice must be delivered personally by the county sheriff where the claim was filed. If personal service is unsuccessful, the notice can be posted in a conspicuous place on the project. The notice must include the court, term, case number, and filing date of the claim.
After service is completed, an affidavit of service or completion must be filed with the prothonotary within 20 days of service.
Both serving the owner and filing the affidavit of service are mandatory steps. Failure to meet either requirement within the specified time will invalidate the lien, even if the delay in serving the notice was due to the sheriff’s delay in service.
Can a Pennsylvania Mechanics Lien Be Amended?
Yes. In Pennsylvania, lien claims can be amended without affecting intervening rights if both parties consent or the court grants permission. However, amendments cannot be made to change the property, alter the hiring party, or increase the claim amount after the filing deadline.
Who Needs to Send a Pennsylvania Notice of Furnishing on Private Projects?
In most cases, preliminary notices are not required for private projects in Pennsylvania. However, if the project is classified as “searchable” (with an overall cost of $1.5 million or more) and the property owner has filed a Notice of Commencement, then any claimant who did not contract directly with the owner must send a Notice of Furnishing. This Notice of Furnishing must be filed on a publicly accessible internet website to maintain lien rights.
Additionally, lien claimants who do not have a direct contract with the property owner are required to provide the owner (or their agent) with a formal Notice of Intent to File a Lien.
How Should the Notice of Furnishing Be Sent in Pennsylvania?
A PA Notice of Furnishing must be filed through the State Construction Notice Registry website. To do this, you’ll need to create an account with the registry. The searchable project owner’s agent is responsible for ensuring compliance with the Mechanics’ Lien Law of 1963, which includes the legal obligation to file a Notice of Furnishing.
How to File a Mechanics Lien in Pennsylvania?
A mechanics lien is a powerful tool available to the construction industry in all 50 states, including Pennsylvania. If a contractor or other party remains unpaid on a construction project in Pennsylvania, filing a Pennsylvania mechanics lien offers the best chance of securing payment.
Pennsylvania’s Mechanics Lien Laws of 1963 outline specific guidelines and requirements for filing a lien, and courts enforce these rules strictly. A single mistake in the filing process can jeopardize a party’s lien rights on a project, making it crucial for contractors and others to follow the process accurately.
Steps to File a Mechanics Lien in Pennsylvania
Unpaid contractors and suppliers can file a Pennsylvania mechanics lien by following these steps:
- Fill Out the Pennsylvania Mechanics Lien Form: Ensure the form is complete and accurate, meeting all state requirements.
- File Your Lien Claim with the County Recorder: Submit your completed lien form to the prothonotary (county clerk) where the property is located, and pay the necessary filing fee.
- Serve a Copy of the Lien to the Property Owner: After filing, deliver a copy of the lien to the property owner and file an Affidavit of Service with the county clerk.
Before You File: Protect Your PA Lien Rights
Before filing a mechanics lien in Pennsylvania, it’s important to understand the state’s notice requirements. General contractors with a direct contract with the property owner are not required to send a Pennsylvania Notice of Furnishing to file a lien. However, this notice may be mandatory for others who do not have a direct contract with the owner, especially if the project is valued at more than $1.5 million and the owner has filed a Notice of Commencement.
Preparing the Pennsylvania Mechanics Lien Form
Before filing, ensure you are using the correct mechanics lien form that meets Pennsylvania’s strict requirements. Without the proper form, your claim could be rejected by the recorder’s office.
Filling Out the Lien Claim
- Lien Claimant Information: Provide your full name, address, and role on the project. If filing on behalf of a company, include the full, registered business name and designation (e.g., LLC, Inc.).
- Property Owner: Accurately identify the property owner for filing and indexing purposes.
- Date of Completion of Work: List the last date you provided labor or materials, which starts the clock on your lien filing deadline.
- Hiring Party: Include the name and address of your customer unless you are the general contractor.
- Dates Required Notices Were Sent: Provide dates for any preliminary notice and the Notice of Intent to Lien, if applicable. Subcontractors must provide formal written notice of their intent to file a claim at least thirty days before doing so.
- Identification of Contract and Statement of Labor & Materials Furnished: Identify the contract and provide a general statement of the labor or materials provided, including prices.
- Services Provided Under a Contract for an Agreed-Upon Sum: If applicable, reference the contract and price.
- Amount of the Claim: List the unpaid amount under the contract terms or the reasonable value of labor or materials provided.
- Property Description: Provide a description of the property with as much detail as possible to ensure identification.
Recording Your Pennsylvania Lien
There are strict deadlines for filing a Pennsylvania mechanics lien. Lien claims must be filed within 6 months of the last work or materials supplied. The Notice of Intent to Lien must be sent to the owner at least 30 days before filing the lien.
Serving Notice of the Lien Claim
After filing the lien, you must serve a Notice of Lien Claim on the property owner within one month. An Affidavit of Service must also be filed with the same office where the lien claim was filed.
What to Do After Filing a Pennsylvania Mechanics Lien
- A. Foreclose on the Lien: If payment issues remain unresolved, the lien may need to be enforced through legal action within two years of filing the claim.
- B. Release (or Cancel) the Lien Claim: Once the debt is paid, you may need to file a PA mechanics lien release form in the same prothonotary office.
Get in Touch
In conclusion, filing a mechanics lien in Pennsylvania is critical for contractors and suppliers to secure payment for their work on a construction project. This powerful legal tool offers protection by granting a security interest in the property. However, navigating Pennsylvania’s mechanics lien laws requires careful attention to detail, as even a small mistake can jeopardize mechanics lien rights.
At CRM Lien Services, we have been serving customers nationwide with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.
We would love to work with you and help you lower your risk and get paid fast!
