Home>Levelset Community>Legal Help>How would the accumulation of interest work on a lien that has been submitted?

How would the accumulation of interest work on a lien that has been submitted?

PennsylvaniaConstruction ContractLien DeadlinesMechanics Lien

We have customer who has owed us 20k since the end of July. He did not pay for the services as per the contract, stating he needed to wait until the sale went through (after the fact). At this point, we feel we need to lien the property to ensure payment. That said, our contract accrues monthly interest. I was curious if the interest could be applied to the lien after the lien itself has been filed. (Ex. Lien filed in December, we are in June of the following year, thus 6 more months of interest would be accumulated.) Would that amount be accounted for?

2 replies

Dec 22, 2017
Be careful when amending a lien claim in Pennsylvania. Under §1504 of the Pennsylvania mechanics lien statute, an amendment to increase the amount of a lien claim may not be made after the time for filing a claim has expired. Since a lien must be filed within 6 months of the claimant's completion of work, that deadline is either fast approaching or has already passed. Anyway, under §1301 of the lien statute, a lien may be filed "...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..." On one hand, when a debt is due and interest has been accruing pursuant to the contractual terms, the amounts may be lienable. On the other hand, those amounts wouldn't directly relate to the work performed under contract. Ultimately, the safer route would be to not amend the claim to include the interest amounts. However, it's advisable to reach out to a local attorney for their input and more clarity on the subject.
0 people found this helpful
Feb 8, 2021
I'm in the state of Texas. I have a customer that has told me over $17,000 for over 6 years. What type of interest can I attach now that the building is being sold?
Report Spam