Construction Liens in Pennsylvania

Cross-References

• Pennsylvania

Pennsylvania refers to its constructions liens as mechanic's liens. They are considered to by "Type 1" mechanic's liens because they are statutory liens whose priority is based upon when construction began rather than when a notice was first filed in the public records.

Mechanic's liens are filed at the county level in the civil court records which is called the Prothonotary in most counties. 49 P.S. 1502. The lien should likewise include a description of the work performed and property encumbered although this does not require a formal legal description. 49 P.S. 1503. The lien is in rem and only encumbers the property where construction was done. Id. Once the lien is filed, it has priority from the date of commencement of construction except as to purchase money mortgages as defined under statute (42 Pa.C.S. 8141(1)) and open-ended mortgages as defined by statute (42 Pa.C.S. 8143(f)) where at least 60% of the proceeds of the open-ended mortgage were used or are intended to pay for all or part of the construction. 49 P.S. 1508.

Once the lien has been filed, the claimant has two (2) years from the date of filing to commence a lawsuit to enforce the lien unless that time period is extended in writing by the property owner. 49 P.S. 1701(b). Once reduced to judgment, the lien operates as a regular civil money judgment and becomes a general lien on all real estate owned by the defendants in the county where it is filed for five (5) years from the date of entry. 49 P.S 1702.

In 2015, there were some sweeping changes to the law that permitted owners to voluntarily file notices of commencement in a statewide registry similar to Utah. 49 P.S. 1501.1 et seq. This sets up an elaborate procedure that must be followed by subcontractors in order to maintain their right to file mechanic's liens. 49 P.S. 1501.2. It does not otherwise effect the law with regard to contractors employed directly by owners.

• Liens
• Liens in Pennsylvania