Mechanic's Liens in Pennsylvania (49 P.S. § 1101 et seq.)

Pennsylvania's Mechanic's Lien Law gives contractors, subcontractors, and suppliers a powerful tool: the right to place a lien directly on the property where they performed work or supplied materials — even if they have no contract with the property owner. The lien secures payment by encumbering the real estate itself, making it difficult for the owner to sell or refinance until the lien is resolved.

Who Can File a Mechanic's Lien?

• General contractors — Can file a lien for any unpaid work, provided they had a contract with the owner.
• Subcontractors — Can file a lien even though their contract is with the general contractor, not the owner. However, subcontractors must give the owner a formal written notice before starting work or within 30 days after to preserve lien rights (49 P.S. § 1501). This is the single most important requirement that subcontractors miss.
• Suppliers — Material suppliers who furnish materials to the project may have lien rights, but only if they provided materials that were actually incorporated into the improvement.

The Residential Property Exception

For residential properties (single-family or multi-family up to 3 units), the Mechanic's Lien Law provides important homeowner protections. A contractor cannot file a mechanic's lien on a residential property unless the contract is in writing and signed by the owner or the owner's agent before work begins (49 P.S. § 1401.1). No written contract = no lien rights on residential property.

This is a critical protection. It means homeowners who hire contractors on a handshake or verbal agreement are protected from mechanic's liens — though the contractor can still sue for breach of contract or in quantum meruit (unjust enrichment).

Filing Deadlines — These Are Strict

Mechanic's lien claims must be filed within 6 months from the date the claimant last performed work or supplied materials to the project. This is a hard deadline — miss it by one day and the lien right is lost. The claim must be filed with the Prothonotary of the Court of Common Pleas in the county where the property is located.

After filing, the claimant must serve a copy of the claim on the property owner within one month of filing. The claimant must also commence an action to enforce the lien within 2 years of filing the claim, or the lien expires.

Defending Against a Mechanic's Lien

Property owners who receive a mechanic's lien have several options:

• Preliminary objections: Challenge the lien on procedural grounds — was the notice given? Was the claim timely? Does the contractor have a written contract for residential work?
• Bond-off the lien: Post a bond with the court equal to 150% of the lien amount, which removes the lien from the property and transfers it to the bond. This allows a sale or refinance to proceed while the dispute is resolved.
• Negotiate a settlement: Many mechanic's lien disputes involve legitimate disagreements about scope of work, quality, or change orders. A negotiated resolution is often the most cost-effective outcome.
• Strike the lien: If the lien is procedurally defective, the owner can petition to strike it. Common defects include failure to give proper notice, late filing, insufficient description of work, or filing against residential property without a written contract.