Filing a Mechanic’s Lien in PA

A Mechanic's Lien may be filed where a homeowner refuses to pay for a Contractor's services. 

What happens when a Contractor performs work or delivers product for a Customer, and the Customer doesn’t pay? If he is smart, the Contractor files a Mechanic’s Lien against the Customer. A Mechanic's Lien is a legal procedure wherein a Contractor or Sub-Contractor can place a lien on a property owner's real estate when that owner has failed to pay for services or products. That lien prevents the homeowner from selling or transferring the property unless and until the lien is satisfied. The lien is filed in the Court of Common Pleas of the county in which the non-paying property owner's property is located.

In order to file a Mechanic’s Lien, the Contractor must set forth all of the following: (1) the terms of the contract; (2) the amount alleged to be due and owing; (3) the name of all parties involved in the contract/transaction; (4) the date of the breach of the agreement; and (5) the property location where the work was completed. In order for a contractor to file a lien in Pennsylvania, he must do so within six (6) months of the time that the work was completed or the product was delivered.

It is important to know that a Sub-Contractor can file a Mechanic’s Lien against a homeowner as well. This is a bit of a different scenario because it is typically the Contractor who is responsible for paying the Sub-Contractor. In a situation where the Sub-Contractor is owed money, he can file a lien against the homeowner. If a Sub-Contractor wishes to file a Mechanic's Lien, he must first give the property owner thirty (30) days formal notice, in writing, of his intent to do so. That notice must explain that he performed work on the named property, but that he hasn’t been paid for his services. The homeowner then must pay the Sub-Contractor for his services, and try to re-coup the monies from the original Contractor.

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