Mechanic’s Liens

412.780.0008

What is a Mechanic’s Lien?

A mechanic’s lien clouds title to property where a contractor, sub-contractor, or supplier has not been paid for services rendered.

How Much Does it Cost?

Our firm prides itself on finding cost-effective solutions to mechanic’s lien issues.  We offer flat fees in many instances. Click here to contacts us for more information.

Benefit From Our Experience  

Our firm has had the luxury of a busy law practice over several years, representing property owners and contractors in complex cases involving construction disputes and mechanic’s liens.  Our attorneys handling these matters range from 17 to 31 years experience each.  

Perspectives

Contractor’s, Sub-Contractor and Suppliers.  If you are a contractor (or supplier) are not paid for your work, you can take a lien against the property in many instances, provided you act quickly and follow the specific law in this area.  Talk to our lawyers before you miss a deadline.

Property Owner’s Perspective.  If you are a property owner who has had work done on  your home or business property (remodeling, new construction, additions, etc.), you may have wanted to see the work completed before paying for it, but that exposes you to a lien against the property if  (1) the work is not paid for or (2) you paid the contractor but he failed to pay a subcontractor, who may in-turn threaten and actually take a lien.  You have certain defenses to the lien, such as the work being sub-standard.  Your defense of payment (that you paid the general, who failed to pay at least one sub) can be problematic.  You should talk to counsel ASAP, especially if you have paid for the balance (or a large portion) of the work upfront.  We often find acceptable solutions.    

In sum, you will find great benefit in contacting an attorney before you agree to any major construction or improvement involving a home or business, because lien issues can often be avoided through carefully planning, escrow agreements, payment plans, and progress payment methods that allow the homeowner to inspect each stage of work before making payment to minimize the risk of disputes over large amounts of money.

Time Sensitive Deadlines

Courts are quick to strike mechanic’s liens that do not comply with specific statutory requirements (see below). Guidance from an experienced lawyer is recommended to meet deadlines to (1) perfect a mechanic’s lien, or to (2) defend against one based on a lien waiver, payment, or other defense, such as the untimely nature of the lien.

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§ 1302. Presumption as to use of materials.
Materials for use in or upon an improvement placed on or near the property or delivered to the owner pursuant to a contract shall be presumed to have been used therein in the absence of proof to the contrary.

§ 1303. Lien not allowed in certain cases.
(a) Persons Other Than Contractors or Subcontractors. No lien shall be allowed in favor of any person other than a contractor or subcontractor, as defined herein, even though such person furnishes labor or materials to an improvement.

(b) Public Purpose. No lien shall be allowed for labor or materials furnished for a purely public purpose.

(c) Conveyance Prior to Lien. If the property be conveyed in good faith and for a valuable consideration prior to the filing of a claim for alterations or repairs, the lien shall be wholly lost.

(d) Leasehold Premises. No lien shall be allowed against the estate of an owner in fee by reason of any consent given by such owner to a tenant to improve the leased premises unless it shall appear in writing signed by such owner that the erection, construction, alteration or repair was in fact for the immediate use and benefit of the owner.

(e) Security Interests. No lien shall be allowed for that portion of a debt representing the contract price of any materials against which the claimant holds or has claimed a security interest under the Pennsylvania Uniform Commercial Code or to which he has reserved title or the right to reacquire title.

§ 1304. Excessive curtilage.
Where an owner objects that a lien has been claimed against more property than should justly be included therein, the court upon petition may, after hearing by deposition or otherwise, limit the boundaries of the property subject to the lien. Failure to raise this objection preliminarily shall not be a waiver of the right to plead the same as a defense thereafter.

§ 1305. Right to lien in case of noncompletion of work.
Except in case of destruction by fire or other casualty, where, through no fault of the claimant, the improvement is not completed, the right to lien shall nevertheless exist.

§ 1306. Consolidation or apportionment of claims.
(a) Consolidation of Claims. Where a debt is incurred for labor or materials furnished continuously by the same claimant for work upon a single improvement but under more than one contract, the claimant may elect to file a single claim for the entire debt. In such case, “completion of the work” shall not be deemed to occur with respect to any of the contracts until it has occurred with respect to all of them.

(b) Apportionment of Claims. Where a debt is incurred for labor or materials furnished by the same claimant for work upon several different improvements which do not form all or part of a single business or residential plant, the claimant shall file separate claims with respect to each such improvement, with the amount of each claim determined by apportionment of the total debt to the several improvements, and in such case, the amount of each separate claim may be less than five hundred dollars ($500), provided that the total debt exceeds five hundred dollars ($500). In no other case shall an apportioned claim be allowed.

§ 1307. Removal or detachment of improvement subject to claim.
(a) Removal Prohibited; Effect.-No improvement subject to the lien of a claim filed in accordance with this act shall be removed or detached from the land except pursuant to title obtained at a judicial sale or by one owning the land and not named as a defendant. Any improvement otherwise removed shall remain liable to the claim filed, except in the hands of a purchaser for value.

(b) Restraint of Removal by Court.-The court may on petition restrain the removal of the improvement in accordance with the Pennsylvania Rules of Civil Procedure governing actions to prevent waste.

ARTICLE IV. WAIVER OF LIEN; EFFECT OF FILING
§ 1401. Waiver of lien by claimant.
A contractor or subcontractor may waive his right to file a claim by a written instrument signed by him or by any conduct which operates equitably to estop such contractor or subcontractor from filing a claim.

§ 1402. Waiver by contractor; effect on subcontractor.
A written contract between the owner and contractor or a separate written instrument signed by the contractor, which provides that no claim shall be filed by anyone, shall be binding; but the only admissible evidence thereof, as against a subcontractor, shall be proof of actual notice thereof to him before any labor or materials were furnished by him; or proof that such contract or separate written instrument was filed in the office of the prothonotary prior to the commencement of the work upon the ground or within ten (10) days after the execution of the principal contract or not less than ten (10) days prior to the contract with the claimant subcontractor, indexed in the name of the contractor as defendant and the owner as plaintiff and also in the name of the contractor as plaintiff and the owner as defendant. The only admissible evidence that such a provision has, notwithstanding its filing, been waived in favor of any subcontractor shall be a written agreement to that effect signed by all those who, under the contract, have an adverse interest to the subcontractor’s allegation.

§ 1403. Release as waiver.
A release signed by the claimant shall not operate as a waiver of the right to file a claim for labor or materials subsequently furnished, unless it shall appear thereby that such was the express intent of the party.

§ 1404. Effect of credit or collateral.
The giving of credit or the receipt of evidence of indebtedness or collateral otherwise than as provided in section 303(e) shall not operate to waive the right to file a claim, but where credit is given, no voluntary proceedings shall be taken by the claimant to enforce the lien until the credit period has expired.

§ 1405. Right of owner to limit claims to unpaid balance of contract price.
Where there has been no waiver of liens and the claims of subcontractors exceed in the aggregate the unpaid balance of the contract price specified in the contract between the owner and the contractor, then if the subcontractor has actual notice of the total amount of said contract price and of its provisions for the time or times for payment thereof before any labor or materials were furnished by him, or if such contract or the pertinent provisions thereof were filed in the office of the prothonotary in the time and manner provided in section 402, each claim shall, upon application of the owner, be limited to its pro-rata share of the contract price remaining unpaid, or which should have remained unpaid, whichever is greatest in amount at the time notice of intention to file a claim was first given to the owner, such notice inuring to the benefit of all claimants.

§ 1406. Right of subcontractor to rescind after notice of contract provisions.
Any provisions of a contract between the owner and the contractor, which reduce or impair the rights and remedies of a subcontractor or which postpone the time for payment by the owner to the contractor for a period exceeding four (4) months after completion of the work, shall be grounds for recision by the subcontractor of his contract with the contractor, unless such subcontractor was given actual notice thereof prior to the time of the making of his contract with the contractor, or the contract or the pertinent provisions thereof were filed in the office of the prothonotary in the time and manner provided by section 402. Such recision shall not impair the right of the subcontractor to recover by lien or otherwise for work completed prior thereto.

§ 1407. Contracts not made in good faith; effect.
A contract for the improvement made by the owner with one not intended in good faith to be a contractor shall have no legal effect except as between the parties thereto, even though written, signed and filed as provided herein, but such contractor, as to third parties, shall be treated as the agent of the owner.

ARTICLE V. FILING AND PERFECTING CLAIM; DISCHARGE OF LIEN
§ 1501. Notice by subcontractor as condition precedent.
§ 1502. Filing and notice of filing of claim.
§ 1503. Contents of claim.
§ 1504. Amendment of claim.
§ 1505. Procedure for contesting claim; preliminary objections.
§ 1506. Rule to file claim.
§ 1507. Indexing claims, et cetera.
§ 1508. Priority of lien.
§ 1509. Effect of forfeiture of leasehold.
§ 1510. Discharge of lien on payment into court or entry of security.

§ 1501. Notice by subcontractor as condition precedent.
(a) Preliminary Notice in Case of Alteration and Repair. No claim by a subcontractor for alterations or repairs shall be valid unless, in addition to the formal notice required by subsection (b) of this section, he shall have given to the owner, on or before the date of completion of his work, a written preliminary notice of his intention to file a claim if the amount due or to become due is not paid. The notice need set forth only the name of the subcontractor, the contractor, a general description of the property against which the claim is to be filed, the amount then due or to become due, and a statement of intention to file a claim therefor.

(b) Formal Notice in All Cases by Subcontractor. No claim by a subcontractor, whether for erection or construction or for alterations or repairs, shall be valid unless, at least thirty (30) days before the same is filed, he shall have given to the owner a formal written notice of his intention to file a claim, except that such notice shall not be required where the claim is filed pursuant to a rule to do so as provided by section 506.

of service, shall be filed within twenty (20) days after service setting forth the date and manner of service. Failure to serve such notice or to file the affidavit or acceptance of service within the times specified shall be sufficient ground for striking off the claim.

(b) Venue; Property in More Than One County. Where the improvement is located in more than one county, the claim may be filed in any one county, the claim may be filed in any one or more of said counties, but shall be effective only as to the part of the property in the county in which it has been filed.
the amount or sum claimed to be due; and
such description of the improvement and of the property claimed to be subject to the lien as may be reasonably necessary to identify them.
Same as a defense in subsequent proceedings.

§ 1508. Priority of lien.
The lien of a claim filed under this act shall take effect and have priority:

(a) In the case of the erection or construction of an improvement, as of the date of the visible commencement upon the ground of the work of erecting or constructing the improvement; and

(b) In the case of the alteration or repair of an improvement, as of the date of the filing of the claim.

§ 1509. Effect of forfeiture of leasehold.
The lien of every claim shall bind only the interest of the party named as owner of the property at the time of the contract or acquired subsequently by him, but no forfeiture or surrender of a leasehold, or tenancy, whether before or after the filing of the claim, shall operate to prejudice its lien against the fixtures, machinery or other similar property.

§ 1510. Discharge of lien on payment into court or entry of security.
(a) Cash Deposit. Any claim filed hereunder shall, upon petition of the owner or any party in interest, be discharged as a lien against the property whenever a sum equal to the amount of the claim shall have been deposited with the court in said proceedings for application to the payment of the amount finally determined to be due.(b) Pro-rata Allocation. In any case where the claim or claims are limited in the manner and to the extent provided in section 405, the owner may deposit with the court in separate proceedings a sum equal to the total allowable amount of said claims determined in accordance with said section, whereupon the court, on petition of such owner, shall order all of said claims discharged as liens against the property, and the sum so deposited applied pro rata to the payment thereof in the amounts finally determined to be due.

(c) Refund of Excess. Any excess of funds paid into court as aforesaid, over the amount of the claim or claims determined and paid therefrom, shall be refunded to the owner or party depositing same upon application for the same.

(d) Security in Lieu of Cash. In lieu of the deposit of any such sum or sums, approved security may be entered in such proceedings in double the amount of the required deposit, or in such lesser amount as the court shall approve, which, however, shall in no event be less than the full amount of such required deposit; and the entry of such security shall entitle the owner to have such liens discharged to the same effect as though the required sums had been deposited in court as aforesaid.

(e) Authority of Court. The court, upon petition filed by any party, and after notice and hearing, may upon cause shown:

require the increase or decrease of any deposit or security;
strike off security improperly filed;
permit the substitution of security and enter an exoneration of security already given.

(d) Limitation on Time of Obtaining Judgment. A verdict must be recovered or judgment entered within five (5) years from the date of filing of the claim. Final judgment must be entered on a verdict within five (5) years. If a claim is not prosecuted to verdict or judgment, as provided above, the claim shall be wholly lost: Provided, however, That in either case, if a complaint has been or shall be filed in the cause and if the cause has been or shall be at issue, all time theretofore or thereafter consumed in the presentation and disposition of all motions and petitions of defendants, substituted defendants and intervenors in the cause, and in any appeal or appeals from any order in the cause, from the date of perfection of such appeal to the date of return of the certiorari from the appellate court to the court of common pleas, shall be excluded in the computation of the five (5) year period herein provided.

Mechanic’s Lien Claims and Defenses. Our Pittsburgh lawyers litigate all kinds of mechanic’s lien claims and defense issues in PA including notice intent, the form of notice, the correct amount claimed, lien waivers in residential and commercial jobs. Let our experienced Pittsburgh attorneys handle the six month deadline to file the lien and the thirty day deadline to serve notice so you have time to perfect the mechanic’s lien claim via a mechanic’s lien complaint. Our Pittsburgh PA lawyers address lien waiver issues, liens in contract or agreement, defense of payment and priority of claims issues. Talk to a Pittsburgh PA attorney about what it means to complete or have completion of a contract. Learn about set-offs and counterclaims, right to retain funds from a contractor or general contractor, subcontractor or supplier, filing of the general contract, posting bond or discharge of the lien. Our attorneys in Pittsburgh, Pennsylvania file a lien defend lien claims; learn how to stop or strike a lien claim. Get a lawyer in PA for lien litigation or to challenge a lien in court.Our Pittsburgh mechanic’s lien lawyers also work on settlement and negotiation of claims involving a general contractor (GC), property owners or renters, or subs. We rule to file a complaint in support of a lien action and consider a suit for money damages. We know the risk of paying twice for the same job or project, when the owner should only pay for the work on the project. There, we challenge the lien on technical grounds and formalities. We evaluate property parties, such as engineers or architects who make claims on renters, owners, reputed owner or those who lease and face a lawsuit or lien. Our Pittsburgh mechanic’s lien attorneys explain about inchoate liens, lien formality, foreclosure on property, a contractor’s work, bank loans, and how a lien can effect the sale of property. Lean about a bond or bonding to discharge the claim, and how to defend a mechanic‘s lien concerning any dwelling, land, renovation of property, deeds, a house or building, alteration of property, repair of property, and “costs-plus” contracts, i.e, labor and materials plus agreed profit.