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Pennsylvania Conditional Waiver and Release of Claim of Lien Upon...

Pennsylvania Lien Release Form

Category:

Liens - Construction - Mechanics

State:

Pennsylvania

Control #:

PA-10-09

Format:

Instant download

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Definition and meaning

A Pennsylvania lien release form is a legal document that officially relinquishes a contractor's or supplier's right to place a lien on a property for unpaid work or materials provided. This form serves as a notification that the debt has been settled, and therefore, removes any legal claim against the property in question.

How to complete a form

To properly complete the Pennsylvania lien release form, follow these steps:

Fill in the date: Write the date when the form is signed.
Enter lienor details: Provide the name and address of the lienor, the party releasing the lien.
Detail payment information: Record the final payment amount received and complete the date range for services.
Specify property address: Describe the property where the work was performed, including its legal description.
Signature: Have the lien holder sign and print their name.

Lastly, ensure that the document is notarized to provide additional legal verification.

Who should use this form

This form is primarily used by contractors, subcontractors, suppliers, and other service providers who have rendered services or provided materials to a property. It is crucial for those who wish to formally release any lien they may have previously placed on a property after receiving final payment for their work.

Homeowners who have settled any outstanding debts to contractors may also benefit from using this form to confirm that no liens exist on their property.

Legal use and context

The Pennsylvania lien release form is utilized in the construction and contracting industries when financial obligations are fulfilled. This form protects property owners from future claims once the payment issues are resolved, and legal rights to file a lien are waived.

Using this form is essential in maintaining clear records and can prevent future disputes regarding unpaid debts associated with property labor or materials.

Benefits of using this form online

Using the Pennsylvania lien release form online offers several advantages:

Convenience: Access the form at any time and complete it at your own pace.
Cost-effective: Eliminate the need for physical paperwork and mailing costs.
Immediate availability: Download the form immediately upon completion.
Guidance: Online resources may offer step-by-step instructions for filling out the form correctly.

Common mistakes to avoid when using this form

When completing the Pennsylvania lien release form, ensure to avoid the following common errors:

Inaccurate information: Double-check all names, addresses, and payment amounts for correctness.
Missing signatures: Ensure that the lien holder's signature is included and properly dated.
Notarization oversight: Remember to have the document notarized to validate its legal standing.
Improper legal description: Ensure that the property description meets legal standards, which may involve a detailed description of the property.

What to expect during notarization or witnessing

When notarizing a Pennsylvania lien release form, the following steps typically occur:

Provide identification: The lien holder must present valid identification to the notary to verify their identity.
Signature before the notary: The lien holder will sign the form in the presence of the notary.
Notary's acknowledgment: The notary will complete their section of the form, including their signature and official seal.

This process ensures that the document is legally binding and recognized by the state.

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How to fill out Pennsylvania Conditional Waiver And Release Of Claim Of Lien Upon Final Payment?

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FAQ

Under the ELT Program, the lienholder is required to immediately perform an electronic transaction to release the lien when a loan is paid off. When the electronic release is done by the lienholder, PennDOT automatically prints and mails a paper title to the owner the next business day.

Lien waivers do not need to be notarized to be effective in Pennsylvania.

There are only nine title-holding states: Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, New York, Oklahoma, Wisconsin. In the other 41 states, titles are issued to the lien holder of your vehicle until the loan is fully paid off.

The ELT Program allows for electronic transmission of encumbered vehicle titles to lienholders and electronic lien maintenance by lienholders. No paper title is printed until the lien is released or a paper title is needed to assign or transfer ownership of the vehicle.

The Pennsylvania Department of Transportation (PennDOT) implemented the Commonwealth's Electronic Liens and Titles (ELT) System in 1998. On July 10, 2008 Pennsylvania became the first state to officially require mandatory ELT participation for all lenders.

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Conditional Waiver and Release of Claim of Lien Upon Final Payment

Note: This summary is not intended to be an all inclusive discussion of Pennsylvania's construction or mechanic's lien laws, but does include basic provisions.

What is a construction or mechanic's lien?

Every State permits a person who supplies labor or materials for a construction project to claim a lien against the improved property. While some states differ in their definition of improvements and some states limit lien claims to buildings or structures, most permit the filing of a document with the local court that puts parties interested in the property on notice that the party asserting the lien has a claim. States differ widely in the method and time within which a party may act on their lien. Also varying widely are the requirements of written notices between property owners, contractors, subcontractors and laborers, and in some cases lending institutions. As a general rule, these statutes serve to prevent unpleasant surprises by compelling parties who wish to assert their legal rights to put all parties who might be interested in the property on notice of a claim or the possibility of a claim. This by no means constitutes a complete discussion of construction lien law and should not be interpreted as such. Parties seeking to know more about construction laws in their State should always consult their State statutes directly.

Who can file a lien in this State?

Pennsylvania law permits contractors and subcontractors to claim a lien 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 shall exceed five hundred dollars ($500).

How long does a party have to file a lien?

Parties seeking to claim a lien must do so with the filing of a Lien Claim form within four (4) months of the claimant's last work. Thereafter, a lien claimant has two (2) years to bring an action to enforce the lien.

What kind of notice is required prior to filing a lien?

Subcontractors involved in the alteration or repair of property must file a Preliminary Notice of Intent to File Lien prior to the completion of work. Thereafter all subcontractors, even those involved in alteration or repair, must file a Formal Notice of Intent to File Lien at least thirty (30) days before a Lien Claim is filed.

By what method is a lien filed in this State?

A Lien Claim form is filed with the prothonotary of the county where the property is situated, and must be filed within four (4) months of the completion of work. Written notice of the filing must be served on the property owner within one (1) month after filing and recorded within twenty (20) days of service.

How long is a lien good for?

An action to obtain judgment upon a claim filed shall be commenced within two (2) years from the date of the filing.

Are liens assignable?

Pennsylvania statutes on construction liens do not specifically speak to whether liens may be assigned to other parties.

Does this State require or provide for a notice from subcontractors and laborers to property owners?

Yes. Subcontractors are required in some cases to provide two notices to the property owner in the form of a Preliminary Notice of Intent to File Lien for alterations and repairs and a Formal Notice of Intent to File Lien. In addition, Pennsylvania law provides that a contractor or subcontractor can issue a written waiver of all lien claims to the property owner.

Does this State require or provide for a notice from the property owner to the contractor, subcontractor, or laborers?

Pennsylvania law provides for a notice from the property owner to the contractor advising the contractor that a subcontractor has provided the owner with notice that a lien may be filed. The notice also demands that the contractor pay the claim or undertake to defend it.

Does this State require a notice prior to starting work, or after work has been completed?

No. Pennsylvania statutes do not require a Notice of Commencement or a Notice of Completion as required in some other States.

Does this State permit a person with an interest in property to deny responsibility for improvements?

No. Pennsylvania statutes do not have a provision which permits the denial of responsibility for improvements.

Is a notice attesting to the satisfaction of a lien provided for or required?

No. Pennsylvania statutes do not provide for or require that a lien holder who has been paid produce or file a notice to that effect.

By what method does the law of this State permit the release of a lien?

As stated above, Pennsylvania statutes have no specific provision for the release of a lien, other than the automatic dissolution that occurs if suit to enforce the lien is not brought within two (2) years. However, Pennsylvania law does permit a contractor or property owner to issue a written notice to a subcontractor demanding that the subcontractor file a lien claim within thirty (30) days of receipt of the notice or forever be barred from doing so.