Tenants in Pennsylvania: How to Fortify Your Mechanics’ Lien Rights
If you are a contractor that enters into contracts with commercial tenants to perform fit-out work in Pennsylvania, there are steps you can take to protect yourself from the following scenario.
Scenario: You enter into a written contract directly with a commercial tenant to fit-out the commercial space they leased from the landlord or property owner(s). You perform and complete the fit-out work with no deficiencies, yet the tenant does not pay you in full for the work you performed. You decide to file a mechanics’ lien to secure payment of the amount you are owed. A mechanics’ lien against the property owner’s interest in the property is a powerful tool because the property owner will face the risk of losing the property in a foreclosure sale if you prevail on your mechanics’ lien claim (in which case you may be paid from the sale proceeds along with any other parties, if any, that have an interest in the property).
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