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How to Confirm Eligibility for Texas’ Complicated Mechanic’s Lien System

The State of Texas is notorious for its exceedingly complicated lien laws. This means contractors that attempt to utilize a mechanic’s lien to obtain due compensation from an owner must be able to satisfy some extremely delicate deadlines and filing procedures. Even a single error or omission could result in a rejected lien, which can be detrimental to your efforts to procure payment.

In this article, a Houston construction lien attorney from Cotney Law will detail how contractors can confirm their eligibility in Texas’ complicated mechanic’s lien system. As you will learn over the course of this article, an experienced attorney can be a valuable partner in the fight against nonpayment. The future of your business is largely predicated on your ability to satisfy contracts and collect payments. When you’re doing everything in your power to meet the terms and conditions of your contract, you don’t want all of your hard work to be undone by a duplicitous owner. The mechanic’s lien is the most effective and proven solution for dealing with nonpayment, but only when handled by a Houston construction lien attorney with years of experience fighting for the industry.

Three Factors to Confirm Eligibility

Before you can file a mechanic’s lien, you have to confirm that you are legally allowed to do so. This determination can usually be made by answering three questions, including:

  1. Was the work you performed covered and protected by Texas lien laws?
  2. Did you provide all of the necessary notice requirements prior to filing?
  3. Have you satisfied the mandatory lien filing deadlines?

The first question can be answered by taking a look at the Texas Property Code, which breaks down project participants into three categories: those who furnish labor or materials, those who fabricate special materials, and design professions (engineers, architects, etc.). The answer to the second question depends on your role in a project. General contractors do not have to issue a notice before filing a lien against a piece of non-residential property. However, to file a lien against a piece of residential property, you must issue a disclosure notice and a list of subcontractors to the owner. Subcontractor lien filing requirements are more complex because they include specific rules for residential and non-residential projects as well as uniform rules that cover all projects. In addition to contractors, our Houston construction lien attorneys can assist subcontractors with their mechanic’s lien needs, including issuance of two-month and three-month notices. We can also help you meet all of the necessary deadlines to prevent the loss of your lien rights.

Consult a Houston Construction Lien Attorney

Whenever an owner decides to withhold payment, a Houston construction lien attorney can help you get what is rightfully yours. Whether through the use of a strongly worded demand letter or a perfected lien, our attorneys have years of experience fighting for the rights of contractors. Part of our mission as Houston construction lien attorneys is to ensure that contractors get paid for their hard work, so they can continue to help the construction industry grow and flourish.

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.