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Can a private sewer company file a lien on property?

(I asked a question earlier but some information was incorrect) - So I am part of a private sewer company, however, we are a PUC (public utility commission). The private sewer company ("We") provides services to individual land owners in the respective area. Some land owners have not been paying their sewer bills and We would like to place a lien on their property. Now, I have looked into different liens in Pennsylvania and most are limited to contractors/municipalities/etc. Do we have any options to collect on the charges they failed to pay for the services?

1 reply

Feb 5, 2020

There are a few potential issues that come to mind regarding the above situation and mechanics lien rights. For one, mechanics liens generally only attach to real property - i.e. real estate. So, personal property typically can't be liened by a mechanics lien claim. But, if work was done which improved or altered the underlying real property, then lien rights might be on the table to some degree. Further, note that mechanics lien rights are available to those who provide a permanent improvement to the project property. So, that could also limit the potential for a lien filing. While installation or repair might alter the property and give rise to mechanics lien rights, something like regular maintenance or service might not. Further discussion here: Do Repair and Maintenance Companies Have Mechanics Lien Rights? Finally, note also that mechanics liens for tenant improvements tend to limit the claim to the leasehold interest of the property rather than the fee interest, and Pennsylvania follows that general rule. So, when hired by an owner to perform the work, or when the work was approved by the owner in writing, then full lien rights against the land may be available. But, if hired by a tenant, the ability to lien will be limited.

Other recovery options will be available

Mechanics lien rights are hardly the only recourse for unpaid work. Other recovery options - like proceeding with legal claims, sending a debt to collections, etc. might be available. Levelset discusses some of those other options here: Can’t File a Lien? Here Are Some Other Options For Recovery.

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