346-250-0555

The Intricacies of Filing a Mechanic’s Lien in Texas Part 4

Proudly Serving Employers

We will now conclude this four-part article by summarizing the deadlines and requirements for filing against a residential property as laid out in the comprehensive presentation by one of the Houston contractor attorneys at Cotney Law. To join the presentation and learn about these topics, please click here. We cannot stress enough how important it is that you consult with a Houston contractor attorney to ensure that your lien is filed timely and properly. The attorneys at Cotney Law are well versed in Texas lien laws and are up to the task of helping you secure payment on a project.

Deadlines for Filing Against Residential Properties

A residential property is a single-family home that is used by one or more adults as a dwelling. All of the previously mentioned deadlines in parts one, two, and three must be followed for filing a mechanic’s lien against a residential property. For all subcontractors and other applicable parties, the deadline to send a Notice of Non-Payment is now the 15th day of the second month. Additionally, all parties must file the Lien Affidavit by the 15th day of the third month.

Requirements for Original Contractors on Residential Projects

As previously mentioned in part two, a general contractor has additional steps to take when filing a mechanic’s lien in Texas. This includes having a Disclosure Statement and list of subcontractors and suppliers in the contract. Additionally, before taking final payment, you must send the owner a Final Bills-Paid Affidavit, which states that every party below you has been paid. Finally, a Disbursement Statement must be provided to the owner that includes the names and addresses of each subcontractor under the general contractor.

Failure to follow any of the requirements laid out in this four-part article could result in the lien being deemed invalid or fraudulent. The complex nature of Texas mechanic’s liens means it is imperative that you partner with a Houston contractor attorney when looking to secure payments. Please don’t let the strict deadlines of filing deter you from seeking what is owed to you.

If you would like to speak one of our Houston contractor attorneys, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Suppliers have their own set of deadlines that must be met in order to properly file a mechanic’s lien in the State of Texas. In parts one and two of this four-part article, we discussed the points laid out by a Houston construction lawyer at Cotney Law in their presentation on mechanic’s lien laws in Texas.

Now, we will continue by detailing the requirements that suppliers must follow in order for their lien to be valid. While this discussion is detailed, it does not completely capture the complexity of the laws in play. Please consult with our team of Houston construction lawyers at Cotney Law before moving forward with your mechanic’s lien.    

Deadlines for Suppliers of Specially Manufactured Materials

Specially manufactured materials are materials that were specifically created for a project and cannot be repurposed for another project. For example, a window or door crafted to certain dimensions may not work for other properties. The deadlines for suppliers of specially manufactured materials are just as complex as they are for second- and third-tier contractors. They are as follows:

  • Notice Trigger: Last day of the month in which material orders were received or accepted
  • Non-Payment Notice Trigger: Last day of each month that materials provided were not paid for in full
  • Send Specially Manufactured Materials Notice: 15th day of the second month from that date material orders were received or accepted
  • Lien Trigger: Last day of last month that materials were provided
  • Filing Lien Affidavit: 15th day of the fourth month
  • Notices of Non-Payment of Lien Affidavit: 5 days after the filing of the Lien Affidavit

Follow this link to view our presentation detailing the above deadlines. As you can see, the deadlines that suppliers are up against are just as strict as they are for second- and third-tier contractors. As we’ll see in part four, even original contractors have their own set of hurdles to overcome. No matter what tier you fall under, it is in your best interest to partner with a Houston construction lawyer when filing a mechanic’s lien.

Join us in part four as we discuss the requirements to file against residential properties and conclude our discussion on filing mechanic’s liens in the State of Texas.

If you would like to speak with one of our Houston construction lawyers, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Mechanic’s liens may be the most reliable way to receive payment when an owner’s funds dry up. As our Houston construction lien attorneys know, Texas arguably has the most complicated rules in place for anyone interested in securing payment. Fortunately, a Houston construction lien attorney took the time to create an in-depth presentation outlining the deadlines involved in filing a mechanic’s lien in Texas. You can view this presentation here.

In part one of this four-part article, we summarised a description of the tiers that an owed party can fall into as well as the Notice of Retainment that should be sent prior to work commencing. Now, we will continue to discuss the complicated deadlines that contractors and subcontractors will face when attempting to file a lien in Texas.

Deadlines for Second- and Third-Tier Contractors (Subcontractors)

All contractors must send a notice to the owner informing them of nonpayment every month. If you contracted directly with the owner, then you are the original contractor and have more leeway on commercial projects and less leeway on residential projects (more on that in part three). For commercial projects, the original contractor only has one filing, the Lien Affidavit, which is due the 15th day of the fourth month after the non-payment lien trigger. The lien trigger is the last day of the last month that the original contract was completed, finally settled, terminated, or abandoned.

In contrast to the above, third-tier contractors must send two notices every month when they are not paid. We’ve laid out the deadlines for notices for second- and third-tier contractors below.

  1. Non-Payment Notice Trigger: The last day of the month that work was performed and not paid for in full
  2. Non-Payment Notice: 15th day of the third month for second-tier contractors and sent to owners and original contractors. 15th day of the second month for third-tier contractors and sent only to original contractors
  3. Second Non-Payment Notice: 15th day of the third month for third-tier contractors and sent to the owner and original contractor
  4. Lien Trigger: The last day of the last month that labor or materials were provided
  5. Lien Affidavit: The 15th day of the fourth month
  6. Notice of Non-Payment Lien Affidavit: Five days after the lien affidavit was filed to the owner

You can follow this link to watch the corresponding discussion in the presentation. Even with the deadlines laid out above, the language needed for the notices and affidavit is incredibly specific. Please consult with a Houston construction lien attorney in order to ensure that your mechanic’s lien is correctly filed.

Please join us in parts three and four as we continue to discuss the deadlines and requirements for filing a mechanic’s lien in Texas.

If you would like to speak with one of our Houston construction lien attorneys, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Texas is by far the state with the most complicated rules and regulations for filing a mechanic’s lien. The notices, deadlines, and language that must be used vary from situation to situation and from contractor to subcontractor to supplier. In this four-part article, we’ll be summarizing an incredible presentation by one of our Houston construction attorneys at Cotney Law, detailing the deadlines and steps to take in order to file a mechanic’s lien in The Lone Star State. To view part one of this in-depth presentation, please follow this link.   

Sending a Notice of Retainage

The State of Texas does not require an owner to send a Notice of Commencement out to contractors. This can cause contractors to have to scramble when they are forced to collect all of the necessary information to file a mechanic’s lien. That’s why we recommend sending a Notice of Retainage/Request for Information to an owner before work begins on a project.

The Notice of Retainage should request the following information:

  • A legal description of the improved property
  • The name and address of the surety and a copy of the bond if there is a surety bond
  • Confirmation of and amounts of prior recorded liens, bond claims, and security interests on the property
  • The names and addresses of persons having prior recorded liens, bond claims, and security interests on the property
  • The date of execution for the original contracts
  • The owner’s name and address
  • The original contractor’s name and address
  • The original contract’s dates of termination or abandonment
  • The Affidavit of Completion

If you do not send a Notice of Retainage at the beginning of a project, you will be forced to request information while up against a tight deadline. We encourage you to consult with a Houston construction attorney when filing a mechanic’s lien to ensure that all necessary information is collected in a timely fashion.

Know Your Tier  

The deadlines to send notices to owners depends entirely on what tier you fall under in the project hierarchy. This is what makes filing a mechanic’s lien in Texas so complicated and the primary reason why you should do so only with the aid of a Houston construction attorney. Depending on your tier, you may be required to send notices more frequently and by earlier dates. These tiers are as follows:

  1. Original contractors
  2. Second- and third-tier contractors (subcontractors)
  3. Suppliers

Join us in parts two, three, and four as we discuss the deadlines involved with filing a mechanic’s lien for second-tier contractors, third-tier contractors, and suppliers as well as the deadlines and requirements for residential properties.  

If you would like to speak with one of our Houston construction attorneys, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.