MECHANICS' LIEN LAW OF 1963

Cl. 49Act of Aug. 24, 1963, P.L. 1175, No. 497

AN ACT

To codify, amend, revise and consolidate the laws relating to

mechanics' liens.

TABLE OF CONTENTS

Article I. Short Title

Section 101. Short Title.

Article II. Definitions

Section 201. Definitions.

Section 306. Consolidation or Apportionment of Claims.

Section 307. Removal or Detachment of Improvement Subject

to Claim.

Article IV. Waiver of Lien; Effect of Filing

Section 401. Waiver of Lien by Claimant.

Section 402. Waiver by Contractor; Effect on Subcontractor.

Section 403. Release as Waiver.

Section 404. Effect of Credit or Collateral.

Section 405. Right of Owner to Limit Claims to Unpaid

Balance of Contract Price.

Precedent.

Section 501.1. State Construction Notices Directory.

Section 501.2. Failure to File Notice of Furnishing.

Section 501.3. Notice of Commencement and Notice of Furnishing.

Section 501.4. Notice of Completion for Informational Purposes

Only.

Section 501.5. Notice.

Section 501.6. Prohibition.

Section 502. Filing and Notice of Filing of Claim.

Section 503. Contents of Claim.

Section 509. Effect of Forfeiture of Leasehold.

Section 510. Discharge of Lien or Reduction of Lien.

Article VI. Duties and Remedies of Owner and Contractor on

Notice of Intention to File or on Filing of

Claim by Subcontractor

Section 601. Owner's Right to Retain Funds of Contractor.

Section 602. Notice to Contractor of Claim.

Section 603. Contractor's Duties on Receipt of Notice.

Section 604. Additional Remedies of Owner.

Article VII. Judgment; Execution; Revival

Section 706. Execution upon Judgment.

Article VIII. Severability and Effective Date

Section 801. Severability.

Section 802. Effective Date.

Article IX. Repealer

Section 901. Specific Repeal.

Section 902. General Repeal.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

ARTICLE I.

phrases when used in this act shall have the meaning ascribed

to them in this section, except where the context clearly

indicates a different meaning:

(1) "Improvement" includes any building, structure or other

improvement of whatsoever kind or character erected or

constructed on land, together with the fixtures and other

personal property used in fitting up and equipping the same for

the purpose for which it is intended.

(2) "Property" means the improvement, the land covered

thereby and the lot or curtilage appurtenant thereto belonging

express or implied, erects, constructs, alters or repairs an

improvement or any part thereof or furnishes labor, skill or

superintendence thereto; or supplies or hauls materials,

fixtures, machinery or equipment reasonably necessary for and

actually used therein; or any or all of the foregoing, whether

as superintendent, builder or materialman. The term also

includes an architect or engineer who, by contract with the

owner, express or implied, in addition to the preparation of

drawings, specifications and contract documents also

superintends or supervises any such erection, construction,

alteration or repair.

fixtures, machinery or equipment reasonably necessary for and

actually used therein; or any or all of the foregoing, whether

as superintendent, builder or materialman. The term does not

include an architect or engineer who contracts with a contractor

or subcontractor, or a person who contracts with a materialman

or a person who contracts with a subcontractor not in direct

privity of a contract with a contractor.

(6) "Claimant" means a contractor or subcontractor who has

filed or may file a claim under this act for a lien against

property.

last occurs.

(9) "Labor" includes the furnishing of skill or

superintendence.

(10) "Erection and construction" means the erection and

construction of a new improvement or of a substantial addition

to an existing improvement or any adaptation of an existing

improvement rendering the same fit for a new or distinct use

and effecting a material change in the interior or exterior

thereof.

(11) "Alteration and repair" means any alteration or repair

incidental to the erection, construction, alteration or repair;

(b) Initial fitting up and equipping of the improvement

with fixtures, machinery and equipment suitable to the purposes

for which the erection, construction, alteration or repair was

intended; and

(c) Furnishing, excavating for, laying, relaying, stringing

and restringing rails, ties, pipes, poles and wires, whether

on the property improved or upon other property, in order to

supply services to the improvement.

(13) "Prothonotary" means the prothonotary of the court or

regardless of whether any portion of that basement is at grade

level, or which is zoned or otherwise approved for residential

development on which there is or will be constructed a

residential building not more than three stories in height, not

including any basement level, regardless of whether any portion

of that basement is at grade level, planned residential

development or agricultural use, or for which a residential

subdivision plan or land development plan or planned residential

development plan has received preliminary, tentative or final

P.L.l298, No.34)

(15) "Costs of construction" means all costs, expenses and

reimbursements pertaining to erection, construction, alteration,

repair, mandated off-site improvements, government impact fees

and other construction-related costs, including, but not limited

to, costs, expenses and reimbursements in the nature of taxes,

insurance, bonding, inspections, surveys, testing, permits,

legal fees, architect fees, engineering fees, consulting fees,

accounting fees, management fees, utility fees, tenant

improvements, leasing commissions, payment of prior filed or

reimbursement includes any such disbursements made to the

borrower, any person acting for the benefit or on behalf of the

borrower or to an affiliate of the borrower. ((15) added July

9, 2014, P.L.1019, No.117)

(16) "Department" means the Department of General Services.

((16) added Oct. 14, 2014, P.L.2494, No.142)

(17) "Directory" means the State Construction Notices

Directory in section 501.1. ((17) added Oct. 14, 2014, P.L.2494,

No.142)

(18) "Searchable project" means a project consisting of the

(i) A Notice of Commencement;

(ii) A Notice of Furnishing;

(iii) A Notice of Completion; or

(iv) A Notice of Nonpayment.

((19) added Oct. 14, 2014, P.L.2494, No.142)

(20) "Searchable project owner" means the owner of record

of real property that is a searchable project. The term shall

include the owner's agent. ((20) added Oct. 14, 2014, P.L.2494,

No.142)

(201 amended June 29, 2006, P.L.210, No.52))

Section 301. Right to Lien; Amount; Subcontractor.--(a)

improvement and the estate or title of the owner in the property

shall be subject to a lien, to be perfected as herein provided,

for the payment of all debts due by the owner to the contractor

or by the contractor to any of his subcontractors for labor or

materials furnished in the erection or construction, or the

alteration or repair of the improvement, provided that the

amount of the claim, other than amounts determined by

contractor;

(2) the property is or is intended to be used as the

residence of the owner or subsequent to occupation by the owner,

a tenant of the owner; and

(3) the residential property is a single townhouse or a

intended or designed to be built, used, rented or leased for

living purposes. For the purposes of this paragraph, the term

"townhouse" shall mean a single-family dwelling unit constructed

in a group of three or more attached units in which each unit

presumed to have been used therein in the absence of proof to

the contrary.

Section 303. Lien Not Allowed in Certain Cases.--

(a) Persons Other Than Contractors or Subcontractors. No

lien shall be allowed in favor of any person other than a

contractor or subcontractor, as defined herein, even though

such person furnishes labor or materials to an improvement.

(b) Public Purpose. No lien shall be allowed for labor or

materials furnished for a purely public purpose.

(c) Conveyance Prior to Lien. If the property be conveyed

it shall appear in writing signed by such owner that the

erection, construction, alteration or repair was in fact for

the immediate use and benefit of the owner.

(e) Security Interests. No lien shall be allowed for that

portion of a debt representing the contract price of any

materials against which the claimant holds or has claimed a

security interest under the Pennsylvania Uniform Commercial

Code or to which he has reserved title or the right to reacquire

title.

Section 304. Excessive Curtilage.--Where an owner objects

preliminarily shall not be a waiver of the right to plead the

same as a defense thereafter.

Section 305. Right to Lien in Case of Noncompletion of

Work.--Except in case of destruction by fire or other casualty,

where, through no fault of the claimant, the improvement is not

completed, the right to lien shall nevertheless exist.

Section 306. Consolidation or Apportionment of Claims.--

(a) Consolidation of Claims. Where a debt is incurred for

labor or materials furnished continuously by the same claimant

labor or materials furnished by the same claimant for work upon

several different improvements which do not form all or part

of a single business or residential plant, the claimant shall

file separate claims with respect to each such improvement,

with the amount of each claim determined by apportionment of

the total debt to the several improvements, and in such case,

the amount of each separate claim may be less than five hundred

dollars ($500), provided that the total debt exceeds five

hundred dollars ($500). In no other case shall an apportioned

claim be allowed.

named as a defendant. Any improvement otherwise removed shall

remain liable to the claim filed, except in the hands of a

purchaser for value.

(b) Restraint of Removal by Court. The court may on petition

restrain the removal of the improvement in accordance with the

Pennsylvania Rules of Civil Procedure governing actions to

prevent waste.

ARTICLE IV.

WAIVER OF LIEN; EFFECT OF FILING.

estop such contractor from filing a claim.

(b) Nonresidential Buildings.

(1) Except as provided in subsection (a), a waiver by a

contractor of lien rights is against public policy, unlawful

and void unless given in consideration for payment for the work,

services, materials or equipment provided and only to the extent

that such payment is actually received.

(2) Except as provided in subsection (a), a waiver by a

subcontractor of lien rights is against public policy, unlawful

and void, unless given in consideration for payment for the

Section 402. Waiver by Contractor; Effect on

Subcontractor.--

(a) General Rule. To the extent that lien rights may be

validly waived by a contractor or subcontractor under section

401(a) or where the contractor has posted a bond under section

401(b)(2), a written contract between the owner and a

contractor, or a separate written instrument signed by the

contractor, which provides that no claim shall be filed by

anyone, shall be binding: but the only admissible evidence

not less than ten (10) days prior to the contract with the

claimant subcontractor, indexed in the name of the contractor

as defendant and the owner as plaintiff and also in the name

of the contractor as plaintiff and the owner as defendant. The

only admissible evidence that such a provision has,

notwithstanding its filing, been waived in favor of any

subcontractor, shall be a written agreement to that effect

signed by all those who, under the contract, have an adverse

interest to the subcontractor's allegation.((a) amended Aug.

11, 2009, P.L.298, No.34)

electronically retrievable regardless of whether the parties

are designated as plaintiff or defendant, the contract or

separate written instrument filed with the office of the

prothonotary under subsection (a) may be indexed in the name

of the contractor as defendant and the owner as plaintiff or

in the name of the contractor as plaintiff and the owner as

defendant.

(402 amended June 29, 2006, P.L.210, No.52)

Section 403. Release as Waiver.--A release signed by the

claimant shall not operate as a waiver of the right to file a

not operate to waive the right to file a claim, but where credit

is given, no voluntary proceedings shall be taken by the

claimant to enforce the lien until the credit period has

expired.

Section 405. Right of Owner to Limit Claims to Unpaid

Balance of Contract Price.--Where the claims of subcontractors

exceed in the aggregate the unpaid balance of the contract price

specified in the contract between the owner and the contractor,

then if the subcontractor has actual notice of the total amount

of said contract price and of its provisions for the time or

share of the contract price remaining unpaid, or which should

have remained unpaid, whichever is greatest in amount at the

time notice of intention to file a claim was first given to the

owner, such notice inuring to the benefit of all claimants.

(405 amended June 29, 2006, P.L.210, No.52)

Section 406. Right of Subcontractor to Rescind after Notice

of Contract Provisions.--Any provisions of a contract between

the owner and the contractor, which reduce or impair the rights

and remedies of a subcontractor or which postpone the time for

thereof were filed in the office of the prothonotary in the

time and manner provided by section 402. Such recision shall

not impair the right of the subcontractor to recover by lien

or otherwise for work completed prior thereto.

Section 407. Contracts Not Made in Good Faith; Effect.--A

contract for the improvement made by the owner with one not

intended in good faith to be a contractor shall have no legal

effect except as between the parties thereto, even though

written, signed and filed as provided herein, but such

contractor, as to third parties shall be treated as the agent

Precedent.--

(a) (Deleted by amendment).

(b) (Deleted by amendment).

(b.1) Time Period of Formal Notice. No claim by a

subcontractor, whether for erection or construction or for

alterations or repairs, shall be valid unless, at least thirty

(30) days before the same is filed, he shall have given to the

owner a formal written notice of his intention to file a claim,

except that such notice shall not be required where the claim

is filed pursuant to a rule to do so as provided by section

(4) the general nature and character of the labor or

materials furnished;

(5) the date of completion of the work for which his claim

is made;

(6) a brief description sufficient to identify the property

claimed to be subject to the lien.

(d) Service of Notice. The notice provided by this section

may be served by first class, registered or certified mail on

the owner or his agent or by an adult in the same manner as a

writ of summons in assumpsit, or if service cannot be so made

(a) Directory. The department shall provide for an Internet

website to be known as the State Construction Notices Directory

to serve as a standardized Statewide system for filing

construction notices.

(b) Operational Date. The directory shall be operational

by December 31, 2016. The department may establish a later

effective date if it provides sufficient reasons for the delay

in the implementation of the directory in a notice to the

chairman and minority chairman of the Labor and Industry

public of implementation of the directory and instructions on

its use. The department shall place the notice and instructions

on its Internet website and take other reasonable measures to

inform the general public and the construction industry of the

directory and its purpose.

(d) Fees. The following shall apply:

(1) The department shall establish fees for notices filed

by the searchable project owner.

(2) Fees under paragraph (1) may not in the aggregate exceed

the amount reasonably necessary to implement, operate and

this paragraph shall be searchable by searchable project owner

name, contractor name, property address and unique identifying

number.

(2) Provide copies of the filings of Notice of Furnishing

under section 501.3(b) to a searchable project owner who files

a Notice of Commencement under section 501.3(a).

(3) Provide certified hard copy printing of electronic

receipts upon request for a filing under section 501.3 of a

Notice of Commencement or Notice of Furnishing. The certified

hard copy shall include the date, time and content of the

(f) Index. The directory must be primarily indexed by

county.

(501.1 added Oct. 14, 2014, P.L.2494, No.142)

so deposited applied pro rata to the payment thereof in the

amounts finally determined to be due.

(c) Refund of Excess. Any excess of funds paid into court

as aforesaid, over the amount of the claim or claims determined

and paid therefrom, shall be refunded to the owner or party

depositing same upon application for the same.

(d) Security in Lieu of Cash. In lieu of the deposit of any

such sum or sums, approved security may be entered in such

proceedings in double the amount of the required deposit, or

(e) Authority of Court. The court, upon petition filed by

any party, and after notice and hearing, may upon cause shown:

(1) require the increase or decrease of any deposit or

security;

(2) strike off security improperly filed;

(3) permit the substitution of security and enter an

exoneration of security already given.

(f) Residential Property.

(1) A claim filed under this act with respect to an

improvement to a residential property subject to section 301(b)

price, a claim filed under this act with respect to an

improvement to a residential property subject to section 301(b)

shall, upon a court order issued in response to a petition or

motion to the court by the owner or a party in interest, cause

the lien to be reduced to the amount of the unpaid contract

price owed by the owner or tenant to the contractor.

((f) added July 9, 2014, P.L.1019, No.117)

ARTICLE VI.

subcontractor may retain out of any moneys due or to become due

to the contractor named therein, a sum sufficient to protect

the owner from loss until such time as the claim is finally

settled, released, defeated or discharged.

Section 602. Notice to Contractor of Claim.--

(a) An owner served with a notice as provided by section

601 may, and if he has retained any funds due the contractor

shall, give written notice thereof to the contractor named.

(b) The notice shall state:

(1) the name of the subcontractor, the amount of the claim

(c) The notice may be given by the owner or his agent to

the contractor personally, or to the contractor's manager,

executive or principal officer or other agent, or if none of

these persons can be found, by sending a copy of the notice by