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What the changes to the Pennsylvania Mechanics Lien Laws mean to you.

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

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Comment balloon 4 commentsNick Vandekar, 610-203-4543 • February 01 2007 10:28AM

Comments

Nice post.  A title agent made a general comment on the PA Construction group.  I didn't know about the changes and sought out for more information eventually coming across your blog.  Would you consider posting this blog to the group?
Posted by Gerry Stephens - Central PA Real Estate Market (Wells Fargo) over 12 years ago

Gerry,

 I thought this was posted to the group for all to read.

These links may help as well.

Jim Tupitza's PowerPoint presentation http://suburbanwestrealtors.com/Events/MechanicLiens.pdf

The Mechanic's Lien Law of 1963 http://members.aol.com/StatutesP1/49.Cp.10.html

An article from the "Legal Intelligencer" (August 2006) summarizing the amendments http://www.saul.com/common/publications/pdf_1107.pdf

Posted by Nick Vandekar over 12 years ago
It is posted for the ActiveRain Community, but not in the PA Construction group.  With blogs like this, you'd be a great addition to the group. 
Posted by Gerry Stephens - Central PA Real Estate Market (Wells Fargo) over 12 years ago

Gerry --  To post a blog to a "group" you have to be a member of that group

This brings up a possible new feature for the AR gurus to implement -- which could be added to the "flag post" feature.  It would be nice to be able to flag an article "for inclusion in group..."  which would then allow you to select which froup you wanted to flag it for.  The group admin could then accept it or decline it. 

Posted by Rich Schiffer, Referral Agent, e-PRO over 12 years ago

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