Bill Text: PA HB1101 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for definitions, for right to lien and amount, for waiver of lien by claimant, for contents of claim and for priority of lien.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-03-25 - Referred to JUDICIARY [HB1101 Detail]

Download: Pennsylvania-2009-HB1101-Introduced.html

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PRINTER'S NO. 1297
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1101 Session of2009
INTRODUCED BY GRUCELA, BOYD, COHEN, D. COSTA, DENLINGER, FABRIZIO, GEIST, GIBBONS, HALUSKA, HARKINS, HENNESSEY, HESS, KORTZ, MAHONEY, MILLER, MOUL, PETRI, SIPTROTH, K. SMITH, STERN AND YOUNGBLOOD, MARCH 25, 2009
REFERRED TO COMMITTEE ON JUDICIARY, MARCH 25, 2009
AN ACT
Amending the act of August 24, 1963 (P.L.1175, No.497), entitled
"An act to codify, amend, revise and consolidate the laws
relating to mechanics' liens," further providing for
definitions, for right to lien and amount, for waiver of lien
by claimant, for contents of claim and for priority of lien.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "claimant" in section 201 of
the act of August 24, 1963 (P.L.1175, No.497), known as the
Mechanics' Lien Law of 1963, amended June 29, 2006 (P.L.210,
No.52), is amended and the section is amended by adding a
definition to read:
Section 201. Definitions.--The following words, terms and
phrases when used in this act shall have the meaning ascribed to
them in this section, except where the context clearly indicates
a different meaning:
* * *
(6) "Claimant" means a contractor [or], subcontractor or
surveyor who has filed or may file a claim under this act for a
lien against property.
* * *
(15) "Surveyor" means a professional land surveyor as
defined under section 2(f) of the act of May 23, 1945 (P.L.913,
No.367), known as the "Engineer, Land Surveyor and Geologist
Registration Law."
Section 2. Section 301 of the act is amended to read:
Section 301. Right to Lien; Amount.--
(a) Contractors and Subcontractors. Every improvement and
the estate or title of the owner in the property shall be
subject to a lien, to be perfected as [herein] provided under
this act, for the payment of all debts due by the owner to the
contractor or by the contractor to any of his subcontractors for
labor or materials furnished in the erection or construction, or
the alteration or repair of the improvement, provided that the
amount of the claim, other than amounts determined by
apportionment under section 306(b) of this act, shall exceed
five hundred dollars ($500).
(b) Surveyors. Every estate or title of the owner in the
property shall be subject to a lien, to be perfected as provided
under this act, for the payment of all debts due by the owner to
the surveyor for the services of the surveyor pertaining to the
land, provided that the amount of the claim shall exceed five
hundred dollars ($500).
Section 3. Section 401 of the act, amended June 29, 2006
(P.L.210, No.52), is amended to read:
Section 401. Waiver of Lien by Claimant.--
(a) Residential Buildings.
(1) A contractor may waive his right to file a claim against
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property for the erection, construction, alteration or repair of
a residential building, in which the total contract price
between the owner and the contractor is less than one million
dollars ($1,000,000), by a written instrument signed by him or
by any conduct which operates equitably to estop such contractor
from filing a claim.
(2) (i) A subcontractor may waive his right to file a claim
against property for the erection, construction, alteration or
repair of a residential building, in which the total contract
price between the owner and the contractor is less than one
million dollars ($1,000,000), by a written instrument signed by
him or by any conduct which operates equitably to estop him from
filing a claim.
(ii) A subcontractor may waive his right to file a claim
against the property, irrespective of the contract price between
the owner and the contractor, of a residential building by a
written instrument signed by him or by any conduct which
operates equitably to estop him from filing a claim, provided
the contractor has posted a bond guaranteeing payment for labor
and materials provided by subcontractors.
(3) A surveyor may waive his right to file a claim against
property for the erection, construction, alteration or repair of
a residential building by a written instrument signed by him or
by any conduct which operates equitably to estop such surveyor
from filing a claim.
(b) Nonresidential Buildings.
(1) Except as provided in subsection (a)(1), a waiver by a
contractor of lien rights is against public policy, unlawful and
void unless given in consideration for payment for the work,
services, materials or equipment provided and only to the extent
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that such payment is actually received.
(2) Except as provided in subsection (a)(2), a waiver by a
subcontractor of lien rights is against public policy, unlawful
and void, unless given in consideration for payment for the
work, services, materials or equipment provided and only to the
extent that such payment is actually received, or unless the
contractor has posted a bond guaranteeing payment for labor and
materials provided by subcontractors.
(3) Except as provided in subsection (a)(3), a waiver by a
surveyor of lien rights is against public policy, unlawful and
void unless given in consideration for payment for the work,
services, materials or equipment provided and only to the extent
that such payment is actually received.
Section 4. Section 503 of the act is amended to read:
Section 503. Contents of Claim.--The claim shall state:
(1) the name of the party claimant, and whether he files as
contractor [or], subcontractor or surveyor;
(2) the name and address of the owner or reputed owner;
(3) the date of completion of the claimant's work;
(4) if filed by a subcontractor, the name of the person with
whom he contracted, and the dates on which preliminary notice,
if required, and of formal notice of intention to file a claim
was given;
(5) if filed by a contractor or surveyor under a contract or
contracts for an agreed sum, an identification of the contract
and a general statement of the kind and character of the labor
or materials furnished;
(6) in all other cases than that set forth in clause (5) of
this section, a detailed statement of the kind and character of
the labor or materials furnished, or both, and the prices
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charged for each thereof;
(7) the amount or sum claimed to be due; and
(8) such description of the improvement and of the property
claimed to be subject to the lien as may be reasonably necessary
to identify them.
Section 5. Section 508 of the act, amended June 29, 2006
(P.L.210, No.52), is amended to read:
Section 508. Priority of Lien.--The lien of a claim filed
under this act shall take effect and have priority as follows:
(a) Except as set forth in subsection (c), in the case of
the erection or construction of an improvement, as of the date
of the visible commencement upon the ground of the work of
erecting or constructing the improvement.
(b) (1) Except as set forth in subsection (c), in the case
of the alteration or repair of an improvement by a contractor or
subcontractor, as of the date of the filing of the claim by a
contractor or subcontractor.
(2) Except as set forth in subsection (c), in the case of
the services of a surveyor, as of the date of the filing of the
claim by the surveyor.
(c) Any lien obtained under this act by a contractor [or],
subcontractor or surveyor shall be subordinate to the following:
(1) A purchase money mortgage as defined in 42 Pa.C.S. §
8141(1) (relating to time from which liens have priority).
(2) An open-end mortgage as defined in 42 Pa.C.S. § 8143(f)
(relating to open-end mortgages), the proceeds of which are used
to pay all or part of the cost of completing erection,
construction, alteration or repair of the mortgaged premises
secured by the open-end mortgage.
Section 6. This act shall take effect in 60 days.
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