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Act 34 of 2009, signed into law by Governor Rendell on August 11, 2009, once again amends the Pennsylvania Mechanics’ Lien Law in an effort to protect home buyers from the consequences of mechanics’ liens by broadening the circumstances under which a waiver of liens is permissible.
A mechanics’ lien is a legal tool available to contractors and subcontractors to place a hold on the title to real property so that the property cannot be sold without the owners first paying the contractor. A waiver of liens is a written instrument signed by a contractor or subcontractor that prohibits the filing of a mechanics’ lien claim in the future.
Effective October 10, 2009, the new amendments to Pennsylvania’s Mechanics’ Lien Law change the circumstances under which a waiver of liens is permissible for residential projects. Under the old law, for residential buildings, a contractor or subcontractor could legally waive the right to file a lien where the total contract price between the owner and the contractor was for less than $1 million. The new amendments eliminate this dollar value restriction. Up-front waivers of lien will now be permitted on “residential property,” “on which there is or will be constructed a residential building not more than three stories in height, not including any basement level…” This means that a contractor or subcontractor may waive the right to file a lien against property for residential projects where the project is or will be three stories in height or less (excluding the basement), regardless of the contract price.
For more information regarding the recent changes to Pennsylvania Mechanics’ Lien Law, please contact the Martin Law Firm, Blue Bell, Montgomery County, PA, at (215) 646-3980, toll-free at (877) 777-9373 or by visiting our website.
Jason B. Martin, Esq. is the founder of the Martin Law Firm, P.C., in Blue Bell, Montgomery County, PA, and represents individuals and businesses throughout the Philadelphia five-county area. Please visit our website for more information. http://www.jbmartinlaw.com
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