The mechanic’s lien is arguably a contractor’s greatest tool to protect their financial interests when an owner fails to provide proper compensation for provisions of labor and materials. Of course, avoiding the use of a mechanic’s lien is always preferential as contractor-owner relationships often dissolve as a result, but in many instances, there’s simply no other way for contractors to acquire the compensation they are due.
The process of filing a lien can be complex, and liens are often rejected because contractors failed to abide by the rules and regulations governing liens in their specific state. As a result, it’s always best to partner with a Houston construction attorney if an owner is withholding payment. In this four-part article, our Houston construction attorneys will discuss important, state-specific facts about mechanic’s liens in The Lone Star State.
Who Can File a Mechanics Lien in Texas?
General contractors aren’t the only ones who can file a lien. Lien rights in the State of Texas also extend to subcontractors and material suppliers, too. As long as you fall into one of these categories, and you have completed a substantial amount of work pursuant to the contract, you are eligible to file a lien against the owner of the property. One of the more confusing aspects of the lien law in Texas involves potential lien claimants who create materials specifically for a project that can’t be used on another project. These potential claimants may file a lien even if the materials are not utilized for the improvement of a piece of real property as long as they delivered the proper notices. Design professionals also have lien rights in Texas.
Who Should Send Preliminary Notices?
In Texas, general contractors are not required to send preliminary notices before filing a claim of lien against an owner, but the rules for subcontractors, sub-subcontractors, and suppliers differ significantly. In part two, we will discuss the specific rules for each of these parties regarding the use of preliminary notices, which are required in order to file a successful lien.
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.