PRE-LIEN NOTICE TO OWNER

(NOTICE OF FURNISHING & INTENT TO FILE MECHANIC’S LIEN)

(Commonwealth of Pennsylvania – 49 P.S. § 1501)

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

THIS PRE-LIEN NOTICE (“Notice”) is issued and delivered as of [EFFECTIVE DATE] (the “Effective Date”) by [CLAIMANT LEGAL NAME], a [STATE] [ENTITY TYPE] with a principal place of business at [ADDRESS] (“Claimant”), to [OWNER LEGAL NAME], whose address for notice is [ADDRESS] (“Owner”), with reference to the real property more particularly described in Exhibit A attached hereto (the “Property”).

Recitals

A. Claimant has furnished labor, services, materials, or equipment (collectively, the “Work”) for the improvement of the Property pursuant to a contract or subcontract dated [DATE] with [CONTRACTING PARTY] (the “Contract”).

B. Pursuant to the Pennsylvania Mechanics’ Lien Law of 1963, 49 P.S. § 1501 (West 2023), a subcontractor must serve a written notice of intention to file a mechanic’s lien at least thirty (30) days prior to filing the claim where the Property is a “Residential Building,” and must file a “Notice of Furnishing” within forty-five (45) days after first furnishing labor or materials when a Notice of Commencement has been posted in the State Construction Notices Directory for projects exceeding $1.5 million.

C. Claimant issues this Notice in compliance with the foregoing statutory requirements and to preserve its lien rights.

[// GUIDANCE: For non-residential projects where the owner has posted a Notice of Commencement, insert details regarding the Notice of Furnishing filing in the Directory and attach proof of electronic filing.]

II. DEFINITIONS

The following terms shall have the meanings set forth below and shall apply equally to the singular and plural forms.

1. “Claim” means any mechanic’s lien claim arising under the Mechanics’ Lien Law in connection with the Work.
2. “Completion Date” means the last date on which Claimant furnished labor or materials to the Project, currently estimated as [DATE].
3. “Contract Price” means the total amount payable to Claimant under the Contract, currently $[AMOUNT].
4. “Delinquent Sum” means the unpaid portion of the Contract Price, presently $[AMOUNT], exclusive of interest, costs, and attorney fees.
5. “Improvement” has the meaning set forth in 49 P.S. § 1201.
6. “Notice Period” means the statutory thirty (30)-day period commencing upon Owner’s receipt of this Notice.
7. “Residential Building” has the meaning set forth in 49 P.S. § 1201.

[// GUIDANCE: Delete or revise definitions not applicable to the particular project.]

III. OPERATIVE PROVISIONS

1. Statutory Notice.
   1.1 Pursuant to 49 P.S. § 1501, Claimant hereby notifies Owner of its intention to file a mechanic’s lien against the Property for the Delinquent Sum if payment is not received within the Notice Period.
   1.2 Claimant has furnished the Work described in Section 1.3 and Exhibit B.

2. Description of Work.
   Claimant performed the following general character of the Work:
   • [E.G., “Electrical labor and materials, including wiring, panels, and fixtures.”]

3. Amount Due.
   The Delinquent Sum of $[AMOUNT] is presently due and owing to Claimant, exclusive of accrued interest, costs of collection, and reasonable attorney fees.

4. Demand for Payment.
   Owner shall remit the Delinquent Sum in immediately available funds to Claimant at the address set forth above within ten (10) business days of receipt of this Notice (the “Demand Deadline”).

5. Reservation of Rights.
   Claimant reserves all rights and remedies available under contract, statute, and common law, including without limitation the right to:
   a. File a Claim in the Court of Common Pleas of [COUNTY] at any time after expiration of the Notice Period and within six (6) months after the Completion Date;
   b. Seek interest, costs, expenses, and attorney fees as permitted by law; and
   c. Pursue any additional remedies set forth in the Contract or applicable law.

6. Service of Notice.
   A true and correct copy of this Notice is being served upon Owner by [CERTIFIED MAIL, RETURN RECEIPT REQUESTED / PERSONAL SERVICE] in strict conformity with 49 P.S. § 1501. Claimant will retain the signed receipt or affidavit of service as proof of statutory compliance.
   [// GUIDANCE: If mailing, retain USPS Form 3811; if personal service, attach the server’s affidavit.]

IV. REPRESENTATIONS & WARRANTIES

1. Authority. Claimant is duly organized, validly existing, and in good standing under the laws of its state of formation and is duly authorized to do business in the Commonwealth of Pennsylvania.
2. Accuracy. The facts set forth herein are, to the best of Claimant’s knowledge after reasonable inquiry, true, correct, and complete as of the Effective Date.
3. Good-Faith Dispute Resolution. Claimant has made commercially reasonable efforts to obtain payment prior to issuing this Notice.

V. COVENANTS

1. Owner’s Payment Covenant. Owner shall pay the Delinquent Sum on or before the Demand Deadline.
2. Cooperation. Owner shall cooperate with Claimant in confirming receipt of this Notice and in resolving any disputes regarding the Work or amount due.
3. Notice of Defenses. Owner shall, within five (5) business days of receipt, notify Claimant in writing of any good-faith dispute concerning the Work or Delinquent Sum, including a reasonably detailed statement of any defenses.

VI. DEFAULT & REMEDIES

1. Events of Default. The occurrence of any of the following prior to expiration of the Notice Period constitutes a default by Owner:
   a. Failure to pay the Delinquent Sum by the Demand Deadline;
   b. Failure to provide written notice of bona fide dispute pursuant to Section V.3.

2. Remedies. Upon default, Claimant may:
   a. Record and enforce its mechanic’s lien against the Property;
   b. Commence legal proceedings for the recovery of the Delinquent Sum, interest at the statutory rate, and all costs of collection, including reasonable attorney fees;
   c. Seek sale of the Property to satisfy the Claim as permitted by Pennsylvania law.

3. Cumulative Remedies. The remedies herein are cumulative and in addition to any other rights under the Contract or applicable law.

VII. RISK ALLOCATION

1. Limitation of Liability. Claimant’s aggregate liability to Owner arising out of or related to the Work shall in no event exceed the value of the Work actually performed and unpaid as of the Effective Date.
2. No Indemnification. This Notice does not impose indemnification obligations on either party.
3. Force Majeure. To the extent performance is hindered or delayed by events beyond Claimant’s reasonable control (including without limitation governmental orders, acts of God, or material shortages), all deadlines herein shall be equitably extended.

VIII. DISPUTE RESOLUTION

1. Governing Law. This Notice and any resulting Claim shall be governed by and construed in accordance with the statutory and decisional law of the Commonwealth of Pennsylvania, without regard to conflicts-of-law principles.
2. Forum Selection. The exclusive forum for any action arising under or related to this Notice shall be the Court of Common Pleas of [COUNTY], Pennsylvania.
3. Arbitration. Not applicable.
4. Injunctive Relief. Nothing herein shall impair Claimant’s statutory right to seek injunctive or equitable relief, including enforcement of its mechanic’s lien.

IX. GENERAL PROVISIONS

1. Amendment & Waiver. No amendment or waiver of any provision herein shall be effective unless in a writing signed by Claimant and acknowledged by Owner.
2. Assignments. Claimant may assign its rights hereunder, including any Claim, upon written notice to Owner.
3. Severability. If any provision of this Notice is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.
4. Integration. This Notice constitutes the entire notice required by 49 P.S. § 1501 with respect to the Claim and supersedes all prior oral or written communications relating thereto.
5. Counterparts & Electronic Signatures. This Notice may be executed in counterparts, each of which is deemed an original, and signatures transmitted electronically (e.g., PDF) shall be deemed originals for all purposes.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, Claimant has executed and delivered this Notice as of the Effective Date.

CLAIMANT:
[CLAIMANT LEGAL NAME]
By: _____
Name: ____
Title: _____
Date: ____

STATE OF __ )
: SS
COUNTY OF __ )

On this ___ day of _, 20_, before me, the undersigned, a Notary Public in and for said state and county, personally appeared ____, who acknowledged himself/herself to be the ___ of [CLAIMANT LEGAL NAME], and that he/she, as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained.

Notary Public
My Commission Expires: _______

(Optional) OWNER ACKNOWLEDGMENT OF RECEIPT:
Owner hereby acknowledges receipt of this Notice on ____, 20__.

OWNER: ____
By: ______
Name & Title: ___

EXHIBIT A

Legal Description of the Property
[INSERT OR ATTACH]

EXHIBIT B

Statement of Work & Invoices
[INSERT OR ATTACH]

[// GUIDANCE: Attach all unpaid invoices, delivery tickets, or other supporting documentation to strengthen the evidentiary value of the Notice.]