Page 42 - State Law Summary of Mechanic's Lien Law

Pennsylvania PA

What is the statutory authority? When does a mechanic’s lien have to be filed for claimant to maintain
49 P.S. §§ 1101 to 1902. lien rights?
The claimant must file a lien claim within six months after completing their lienable
What is the Attachment Date of the Mechanic’s Lien? work (49 P.S. § 1502(a)(1)). The date of completion is the later of the dates under the
In the case of the erection or construction of an improvement (new construction), claimant’s contract that they:
as of the date of the visible commencement upon the ground of the work of
erecting or constructing the improvement. 49 P.S. § 1508(a). • Perform the last of their labor or services.
In the case of the alteration or repair of an improvement, as of the date of the filing • Deliver the last of their materials or equipment. 49 P.S. § 1201(8).
of the claim. 49 P.S. § 1508(b).
A subcontractor must file a lien claim sooner if they receive notice to file lien
What constitutes visible commencement of construction? claim by owner or contractor. The subcontractor named therein must file its claim
The “erection, construction, alteration or repair” of an improvement including within 30 days after notice or be forever barred from so doing. 49 P.S. § 1506(a).
the following:
What is the period of enforcement of a filed mechanic’s lien?
a. Demolition, removal of improvements, excavation, grading, filling, paving A mechanic’s lien must be enforced by filing a complaint in the court of common
and landscaping, when such work is incidental to the erection, construction, pleas where the lien was recorded, under the same docket number, within two
alteration or repair; years of filing the lien claim. 49 P.S. § 1701(b), (c); Pa. R. Civ. P. 1651–1661. The
property owner may agree to extend this deadline. Additionally, a judgment must
b. Initial fitting up and equipping of the improvement with fixtures, machinery be obtained within five years from the date the lien was filed, or the lien may be
and equipment suitable to the purposes for which the erection, construction, lost. 49 P.S. § 1701(d).
alteration or repair was intended; and
Is there a procedure to bond over the mechanic’s lien(s)?
c. Furnishing, excavating for, laying, relaying, stringing and restringing rails, According to 49 P.S. § 1510, upon petition to the court of the owner or any party
ties, pipes, poles and wires, whether on the property improved or upon other in interest, the mechanic’s lien may be discharged as a lien against the property
property, in order to supply services to the improvement. 49 P.S. § 1201(12). whenever a sum equal to the amount of the lien claim is deposited with the court,
or by providing approved security (usually a bond) in double the amount of the
What is the priority of the insured construction mortgage/ claim. The court can approve security of a lesser amount.
deed of trust?
A mortgage recorded before the work visibly commences has priority over Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
mechanic’s liens. 49 P.S. § 1508(a). Yes.

Mechanic’s liens have priority over a mortgage recorded after the visible
commencement of work except for:

i. Purchase money mortgage as defined in 42 Pa. C.S. § 8141(1).
49 P.S. § 1508(c)(1).

ii. Open end mortgage as defined in 42 Pa. C.S. § 8143(f) where at least 60% of
the loan proceeds are intended to pay for costs of construction. 49 P.S. §
1508(c)(2). Future advances have priority if disbursed properly,
See 42 Pa. C.S. § 8143(b).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

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