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Can I put a lien agains an owner and tenant of a commercial property in PA if tenant requested it?

PennsylvaniaMechanics Lien

In PA can a contractor who performed work on a commercial property (restaurant/lodge club) at the request of the tenant file a mechanics lien under the assumption that the owner consented to or at least did not object to the improvements or if the improvement increased the value of the property. Should the lien claim include the names of the owner and the owner's tenant?

1 reply

Jan 23, 2020

Pennsylvania appears to follow the general rule when it comes to filing a mechanics lien for a tenant improvement. Like most of the country, a claimant will not be entitled to file a mechanics lien against the owner's interest in the property unless the owner has approved the project, themselves. Specifically, for a Pennsylvania mechanics lien to attach to the owner's property, the property owner must provide written and signed notice that the improvement is for the immediate use of the owner and not just the tenant who authorized the work under § 1303(d) of Pennsylvania's mechanics lien statute. However, it does appear that a lien claimant could obtain a lien against the leasehold interest of the tenant. While that might not be as satisfactory as a mechanics lien against the project - a lien against a leasehold interest could immediately put the tenant in breach of their agreement with the owner, and that can put additional pressure on the tenant to resolve the lien as quickly as possible. For further discussion on mechanics liens and leasehold interests, this resource should be helpful: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement?

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