How does a mechanics lien work in Pennsylvania?

If contractors and suppliers don’t get paid on a construction project in Pennsylvania, they can file a mechanics lien to secure payment. A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property.

Who can file a mechanics lien in Pennsylvania?

A subcontractor can also file a mechanics’ lien. A subcontractor is one who, by express or implied contract with a contractor or another subcontractor, erects, constructs, alters or repairs an improvement or who furnishes labor or supplied materials, fixtures, machinery or equipment.

How do I fight a mechanic’s lien in PA?

(the “Law”), requires three steps: (1) file a mechanics’ lien claim within six months after the work’s completion; (2) serve written notice of the claim on the property owner within one month after filing; and (3) file an affidavit of service of notice, or acceptance of service, within 20 days after service.

How long does a contractor have to file a lien in Pennsylvania?

A notice of intent to lien to an owner is due 30 days before the Lien Claim is filed for subcontractors and sub-subcontractors. For all claimants, the Lien Claim must be filed in court within six months of the claimant’s last work.

What’s a contractor’s lien?

A contractor’s lien (often known as a mechanic’s lien, or a construction lien) is a claim made by contractors or subcontractors who have performed work on a property, and have not yet been paid. A supplier of materials delivered to the job may also file a mechanic’s lien.

What does it mean to perfect a construction lien?

If a lien is “perfected,” this means that the creditor (like a mortgage lender) has established its priority right in the encumbered property regarding other creditors.

Which of the following could file a mechanic’s lien?

Who Can File A Mechanic’s Lien? In real estate, most mechanic’s liens are filed by contractors, suppliers, subcontractors, and laborers who provided products or services on a permanent home improvement or remodel. They typically file a lien when a permanent improvement to real property goes unpaid.

What makes a mechanic’s lien powerful?

The attractive nature of the mechanic’s lien is that the lien is secured by real property and the property can be sold in order to pay the lien. This is powerful tool, but not always efficient.

What are the requirements for mechanic lien?

To get a mechanic’s lien, state law will usually require the subcontractor or supplier to do the following: The lien claimant (the subcontractor/supplier) must provide notice to the homeowner of what is being contributed (e.g., supplying the bathtub), typically within 20-30 days of contribution.

What generally determines the priority of a lien?

Liens generally follow the “first in time, first in right” rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens. For example, a mortgage has priority over a judgment lien if the lender records it before the judgment creditor records its lien.