Changes to Mechanic's Lien Law [2009-08-26]
Governor Rendell recently signed into law an amendment to the Mechanics’ Lien Law of 1963, amended June 29, 2006, which will be effective October 10, 2009. The amendment clarifies the mechanism for and the circumstances under which contractors and subcontractors can waive their lien rights on residential properties.
A residential property is defined as a property "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…" For the majority of cases, waivers will only be effective where the total contract price between owner and contractor is less than $1,000,000.00, but in some circumstances, where the total contract price between owner and contractor is more than $1,000,000.00 waivers by subcontractors may be effective. The new amendment also sets out procedures which enable a contractor to waive lien rights of a subcontractor.
For further information regarding the Mechanics’ Lien Law or any other real estate needs, please call us at 215-675-7300.