MECHANICS'LIENLAWOF1963 ANACT TABLEOFCONTENTS

1 MECHANICS'LIENLAWOF of , 1963, ,No. 497AN ACTTo codify,amend,reviseandconsolidatethelaws relatingtomechanics' Lien;Amount; to Useof Lienin Caseof Noncompletionof Apportionmentof Detachmentof ImprovementSubjectto Lien;Effectof Lienby Contractor;Effecton Creditor Ownerto LimitClaimsto UnpaidBalanceof Subcontractorto RescindafterNoticeof GoodFaith; ;Dischargeof Subcontractoras FileNoticeof CommencementandNoticeof Filingof ; ,Et Forfeitureof Lienor Reductionof OwnerandContractoronNoticeof Intentionto Fileor on FilingofClaimby 'sRightto RetainFundsof Contractorof 'sDutieson Receiptof ;Execution; Judgmenton Rightto Claims;PenaltyforFailureto theCommonwealthof Pennsylvaniaherebyenactsas knownandmaybe citedas the"Mechanics'LienLawof 1963.

2 " ,termsandphraseswhenusedin thisactshallhavethemeaningascribedto themin thissection,exceptwherethecontextclearly indicatesa differentmeaning:(1)"Improvement"include sanybuilding,structureor otherimprovementof whatsoeverkindor charactererectedorconstructedon land,togetherwiththefixturesandotherpers onalpropertyusedin fittingup andequippingthesameforthepurposeforwhich it is intended.(2)"Property"meanstheimprovemen t,thelandcoveredtherebyandthelotor curtilageappurtenanttheretobelongingto thesamelegalor equitableownerreasonablyneededforthegene ralpurposesthereofand forminga partof a singlebusinessor residentialplant.(3)"Owner"meansan ownerin fee,a tenantforlifeoryearsor onehavinganyotherestatein or titleto property.(4)"Contractor"meansonewho,by contractwiththeowner,expressor implied,erects,constructs,altersor repairsanimprovementor anypartthereofor furnisheslabor,skillorsuperintendencethe reto;or suppliesor haulsmaterials,fixtures,machineryor equipmentreasonablynecessaryforandactual lyusedtherein;or anyor allof theforegoing,whetheras superintendent,builderor architector engineerwho,by contractwiththeowner,expressor implied,in additionto thepreparationofdrawings,specificationsa ndcontractdocumentsalsosuperintendsor supervisesanysucherection,construction,a lterationor repair.

3 (5)"Subcontractor"meansonewho,by contractwiththecontractor,or pursuantto a contractwitha subcontractorindirectprivityof a contractwitha contractor,expressorimplied,erects,const ructs,altersor repairsan improvementor anypartthereof;or furnisheslabor,skillorsuperintendencethe reto;or suppliesor haulsmaterials,fixtures,machineryor equipmentreasonablynecessaryforandactual lyusedtherein;or anyor allof theforegoing,whetheras superintendent,builderor architector engineerwho contractswitha contractoror subcontractor,or a personwhocontractswitha materialmanor a personwhocontractswitha subcontractornotin directprivityof a contractwitha contractor.(6)"Claimant"meansa contractoror subcontractorwhohasfiledor mayfilea claimunderthisactfora lienagainstproperty.(7)"Materials"meansb uildingmaterialsandsuppliesofallkinds,an dalsoincludesfixtures,machineryandequipm entreasonablynecessaryto andincorporatedintotheimprovement.

4 (8)"Completionof thework"meansperformanceof thelastof thelaboror deliveryof thelastof thematerialsrequiredby thetermsof theclaimant'scontractor agreement,whicheverlastoccurs.(9)"Labor" includesthefurnishingof skillorsuperintendence.(10)"Erectionandc onstruction"meanstheerectionandconstruct ionof a newimprovementor of a substantialadditionto an existingimprovementor anyadaptationof an existingimprovementrenderingthesamefitfo ra newor distinctuseandeffectinga materialchangein theinterioror exteriorthereof.(11)"Alterationandrepair "meansanyalterationor repairof an existingimprovementwhichdoesnotconstitut eerectionor constructionas definedherein.(12)"Erection,construction ,alterationor repair"includes:(a)Demolition,removalof improvements,excavation,grading,filling, pavingandlandscaping,whensuchworkisincid entalto the erection,construction,alterationor repair;(b)Initialfittingup andequippingof theimprovementwithfixtures,machineryande quipmentsuitableto thepurposesforwhichtheerection,construct ion,alterationor repairwasintended;and(c)Furnishing,excav atingfor,laying,relaying,stringingandres tringingrails,ties,pipes,polesandwires,w hetheron thepropertyimprovedor uponotherproperty,in ordertosupplyservicesto theimprovement.

5 (13)"Prothonotary"meanstheprothonotaryof thecourtorcourtsof commonpleasof thecountyor countiesin whichtheimprovementis situate.(14)"Residentialproperty"meanspr opertyon whichthereis or willbe constructeda residentialbuildingnotmorethanthreestori esin height,notincludinganybasementlevel,rega rdlessof whetheranyportionof thatbasementis at gradelevel,or whichis zonedor otherwiseapprovedforresidentialdevelopme nton whichthereis or willbe constructedaresidentialbuildingnotmoreth anthreestoriesin height,notincludinganybasementlevel,rega rdlessof whetheranyportionof thatbasementis at gradelevel,plannedresidentialdevelopment or agriculturaluse,or forwhicha residentialsubdivisionplanor landdevelopmentplanor plannedresidentialdevelopmentplanhasrece ivedpreliminary,tentativeor finalapprovalon whichthereis or willbe constructeda residentialbuildingnotmorethanthreestori esin height.

6 Notincludinganybasementlevel,regardlesso f whetheranyportionof thatbasementis at gradelevel,pursuantto theactof July31,1968( , ),knownas the"PennsylvaniaMunicipalitiesPlanningCo de."(( ,2009, , )(15)"Costsof construction"meansallcosts,expensesandre imbursementspertainingto erection,construction,alteration,repair, mandatedoff-siteimprovements,governmenti mpactfeesand otherconstruction-relatedcosts,including ,but not limitedto,costs,expensesandreimbursement sin thenatureof taxes,insurance,bonding,inspections,surv eys,testing,permits,legalfees,architectf ees,engineeringfees,consultingfees,accou ntingfees,managementfees,utilityfees,ten antimprovements,leasingcommissions,payme ntof priorfiledorrecordedliensor mortgages,includingmechanicsliens,munici palclaims,mortgageoriginationfeesandcomm issions,financecosts,closingfees,recordi ngfees,titleinsuranceor escrowfees,or anysimilaror comparablecosts.)

7 Expensesor reimbursementsrelatedto an improvementmadeor intendedto be madeto thisdefinition,reimbursementincludesanys uchdisbursementsmadeto theborrower,anypersonactingforthebenefit or on behalfof theborroweror to an affiliateof theborrower.((15)addedJuly9, 2014, , )(16)"Department"meanstheDepartmentof GeneralServices.((16) ,2014, , )(17)"Directory"meanstheStateConstructio nNoticesDirectoryin ((17) , 2014, , )(18)"Searchableproject"meansa projectconsistingof theerectionandconstruction,or alterationor repair,of animprovementcostinga minimumof onemillionfivehundredthousanddollars($1, 500,000).((18) ,2014, , )(19)"Constructionnotice"meansthefollowi ngnoticesrelatedto a searchableproject:(i)A Noticeof Commencement;(ii)A Noticeof Furnishing;(iii)A Noticeof Completion;or(iv)A Noticeof Nonpayment.

8 ((19) ,2014, , )(20)"Searchableprojectowner"meanstheown erof recordof realpropertythatis a 'sagent.((20) ,2014, , )(201amendedJune29,2006, , )) Lien;Amount; (a) providedundersubsection(b),everyimprovem entand the estateor titleof the ownerin the propertyshallbe subjectto a lien,to be perfectedas hereinprovided,forthepaymentof alldebtsdueby theownerto thecontractoror by thecontractorto anyof hissubcontractorsforlaborormaterialsfurn ishedin theerectionor construction,or thealterationor repairof theimprovement,providedthattheamountof theclaim,otherthanamountsdeterminedbyapp ortionmentundersection306(b)of thisact,shallexceedfivehundreddollars($5 00).(b) subcontractordoesnothavetherightto a lienwithrespectto an improvementto a residentialpropertyif:(1)theowneror tenantpaidthefullcontractpriceto thecontractor;(2)thepropertyis or is intendedto be usedas theresidenceof the owneror subsequentto occupationby the owner,a tenantof theowner;and(3)theresidentialpropertyis a singletownhouseor abuildingthatconsistsof oneor twodwellingunitsused,intendedor designedto be built,used,rentedor thisparagraph,theterm"townhouse"shallmea na single-familydwellingunitconstructedin a groupof threeor moreattachedunitsin whicheachunitextendsfromfoundationto roofwitha yardor publicwayonat leasttwosides.

9 (301amendedJuly9, 2014, , ) to Useof use in or uponan improvementplacedon or nearthe propertyor deliveredto theownerpursuantto a contractshallbepresumedto havebeenusedthereinin theabsenceof (a)PersonsOtherThanContractorsor allowedin favorof anypersonotherthanacontractoror subcontractor,as definedherein,eventhoughsuchpersonfurnis heslaboror materialsto an improvement.(b) lienshallbe allowedforlaborormaterialsfurnishedfora purelypublicpurpose.(c)ConveyancePriorto thepropertybe conveyedin goodfaithandfora valuableconsiderationpriorto thefilingof a claimforalterationsor repairs,thelienshallbe whollylost.(d) lienshallbe allowedagainsttheestateof an ownerin feeby reasonof anyconsentgivenby suchownerto a tenantto improvetheleasedpremisesunlessit shallappearin writingsignedby suchownerthattheerection,construction,al terationor repairwasin factfortheimmediateuseandbenefitof theowner.

10 (e) lienshallbe allowedforthatportionof a debtrepresentingthecontractpriceof anymaterialsagainstwhichtheclaimantholds or hasclaimedasecurityinterestunderthePenns ylvaniaUniformCommercialCodeor to whichhe has reservedtitleor the rightto ownerobjectsthata lienhasbeenclaimedagainstmorepropertytha nshouldjustlybe includedtherein,thecourtuponpetitionmay, afterhearingby depositionor otherwise,limittheboundariesof thepropertysubjectto raisethisobjectionpreliminarilyshallnotb e a waiverof therightto pleadthesameas a Lienin Caseof caseof destructionby fireor othercasualty,where,throughno faultof theclaimant,theimprovementis notcompleted,therightto Apportionmentof (a)Consolidationof debtis incurredforlaboror materialsfurnishedcontinuouslyby thesameclaimantforworkupona singleimprovementbutundermorethanonecont ract,theclaimantmayelectto filea suchcase,"completionof thework"shallnotbe deemedto occurwithrespectto anyof thecontractsuntilit hasoccurredwithrespectto allof them.