Pennsylvania Mechanics Lien Frequently Asked Questions
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What is a Pennsylvania mechanics' lien ?
In Pennsylvania, liens filed on private property or on funds relating to a public project are known as Mechanic's Liens. When a Pennsylvania mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.
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Who can file a Pennsylvania mechanics lien?
Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a Pennsylvania construction lien.
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Are pre-lien notices required to file a Pennsylvania mechanics lien?
Subcontractors, suppliers, and sub-subcontractors must serve a formal notice of intention to the owner declaring the subcontractor's intention to file a Pennsylvania mechanics lien. The formal notice of intention must be filed at least thirty (30) days before an actual Pennsylvania construction lien claim is filed by the subcontractor.
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Can you file a Pennsylvania mechanics lien without fist filing a pre-lien notice?
Notice of Intention to File a Lien: General contractors can, but subcontractors, suppliers hired by a contractor, and sub-subcontractors must first provide the notice of intention to file a Pennsylvania mechanics lien.
Notice of Furnishing: Starting in 2017, if a project is valued over $1.5 million and is registered by the owner on the Pennsylvania State Construction Notices Directory, Subcontractors and suppliers are required to file a "Notice of Furnishing" within 45 days after the first day or work or delivering materials to the project. If that PA Notice of Furnishing (NOF) is not filed in time, the subcontractor or supplier waives its lien rights, unless their contract did not provide a warning that failure to file the NOF would result in a waiver of lien rights. Importantly, owners or others who discourage the filing of a NOF are committing a crime, punishable by second-degree misdemeanor charges, on top of damages to the lienor of attorneys fees and court costs.
Notice of Non-Payment: PA also strongly encourages the filing f notices of non-payment, though they are not required. In short, if you are not being paid, you can send a notice to the owner or its agent, or the contractor, informing them that you have not been paid.
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When should a Pennsylvania mechanics lien be filed?
Pennsylvania mechanics' liens on private property must be filed within six months of the last date the lienor provided materials or services to the Project.
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How much does it cost to file a Pennsylvania mechanics' lien ?
LienItNow.com prepares and files Pennsylvania mechanics' liens for a fee of $290.00. Service of the lien is an additional cost since PA requires personal service by the Sheriff in many cases.
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Do I need a written contract to file a Pennsylvania mechanics lien?
No. Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement.
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How does filing a Pennsylvania mechanics' lien help me get my money?
The Pennsylvania mechanics' lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.
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What is a Pennsylvania Stop Notice and why should it be filed
LienItNow.com prepares and serves Pennsylvania Stop Notices for a fee of $125.00. A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic's lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.
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What is an Pennsylvania Amendment to a mechanics' lien Claim?
LienItNow.com prepares, files and serves Pennsylvania Amendments to mechanics' lien Claims for a fee of $250.00. Amendments to a mechanics' lien claim are often needed when something about the claim changes. Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.
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When should a Pennsylvania Discharge of mechanics' lien claim be filed?
LienItNow.com prepares, files and serves Pennsylvania Discharges of mechanics' lien Claims for a fee of $85.00. Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of mechanics' lien Claim should be filed.
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How much does it cost to file a Pennsylvania Extension of a mechanics' lien Claim?
LienItNow.com prepares, files and serves extensions of mechanics' lien Claims for a fee of $85.00. All lien claims expire after a certain period of time, and filing an extension of the mechanics' lien claim prolongs the expiration date. Pennsylvania law, however, does not permit an extension of mechanics' lien claims.
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Can I file a Bond Claim on a Pennsylvania Project?
LienItNow.com prepares, files and serves Pennsylvania Bond Claims for a fee of $275.00. Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants' last date of work. Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.
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Do I need to file a Pre-Notice to make a claim against a Pennsylvania payment bond?
LienItNow.com prepares, files and serves Pennsylvania Pre-Notices for bond claims for a fee of $50.00. Depending on the terms of the payment bond, pre-notices may or may not be required. LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project's bond.
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