This year changes have been made to the laws relating to Pennsylvania Mechanics Liens and this has resulted in Title Insurance companies not covering new construction for protection from Mechanics Liens.
You as a buyer of new construction or a home that was recently remodelled need to be aware that you may find a lien placed against your property by a contractor or even a sub of a sub contractor for work carried out that was not paid for. These contractors have upto six months to apply for the lien, so even after you have settled you may have a problem. Your buyer's agent needs to make you aware of this, and caution you on where you obtain your title insurance. There is even more reason to use a builder's title company if, and it is a big if, they are covering you for protection from any mechanics liens being placed on the property. If a Real Estate brokerage lists a lot of new construction they also may have waivers in place from the larger builders to cover mechanics liens, but it is best to be sure and make sure you ask and ask again and get it in writing.
Not every agent is aware of these changes as they have just gone into effect and some Title company clerks also may not be aware, so make sure you are usng an agent who is primarily a Realtor, not every real estate agent is, who will adhere to the Realtor code of ethics and is informed.
If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you, contact us or connect
Feel free to subscribe to our blog to stay up to date with our latest posts and information on the Tredyffrin Easttown and Main Line Real Estate Market.