Requirements to file a mechanics lien in Texas on residential projects - PowerPoint PPT Presentation

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Requirements to file a mechanics lien in Texas on residential projects

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Filing a Mechanic's Lien in Texas – PowerPoint PPT presentation

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Date added: 28 November 2019
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Title: Requirements to file a mechanics lien in Texas on residential projects


1
REQUIREMENTS To File A Mechanics Lien in Texas
on Residential Projects
2
The process of filing a mechanics lien in Texas
is easier as long as you hold the contract with
the homeowner and have finished off the work as
required. Requirements for filing a lien is
preliminary notice and filing a Lien Affidavit in
the county records. E.g. Consider that you have
completed some construction work on a customers
home. You must have done a great job but for some
reason, the owner is not paying off the bills.
Here is where mechanics lien play role. It is a
procedure to help you get paid for your unpaid
bills. It is easy to file a mechanics lien, you
just have to keep track of the dates.
3
1
Filing a Mechanic's Lien in Texas
Any person who has provided services, supplied
materials or offered labor services for the
enhancement of home are eligible to be paid for
their work. This sector includes contractors,
carpenters, architects, roofers, plumbers, and
other tradespeople. When you are unpaid for your
work there is a process in Texas where you can
file a lien against the project. The type of lien
is called mechanics lien.
4
2
File A Preliminary Notice
For subcontractors and sub-subcontractors and
suppliers, fling a lien on property in Texas
begins with sending a preliminary notice. This is
a warning letter to the property owner and the
general contractor to make them aware of the
unpaid bills. These notices must be sent by
specific deadlines and those depend on who hired
you for the job. The forms are readily available
online as Prelien notices. If the project is a
residential project, you must send the notice by
the 15th day of the second month after completing
the work. So, if you completed the work in March
and have not received payment, your three-month
notice is due by May 15th.
5
3
File An Affidavit Of Lien
According to Texas law, in case the homeowner
does not clear up the payments, the next step is
to file an Affidavit to lien with the help of a
clerk of the county where the property is
located. This is not a lien, its a statement
swearing that you are entitled to file a lien.
Texas Community Building in association with
Texas Rio Grande Legal Aid has an information
booklet for all the forms you need. You can file
an affidavit online. The affidavit has all the
information detailing of work performed, contract
details, employer details, homeowner details, the
property and mainly the amount of claiming.
Additionally, you would also require to attach a
copy of your contract and have the affidavit
notarized before filing an affidavit.
6
4
Serve Within Five Days
According to Texas property code Chapter 53, a
person who is filing an affidavit must mail the
copy of mechanics lien affidavit to the property
owner within five days of filing. Texas law
allows you to send it via certified mail with a
return receipt. If you are a sub-contractor then
you would also need to file and mail the lien
affidavit to the general contractor within five
days. Once you have sent the affidavit your lien
would be live. It acts as a cloud on the title,
essentially blocking the property owner from
selling her home until the lien is paid.
7
5
Follow-up Action
The purpose of filing a lien affidavit, is for
the property owner to come and pay the invoices
instead of risking keeping a lien against the
property. In this case, you wouldnt have to do
anything but to release the lien once the bills
are paid. Many times, you'll have to enforce
the lien by foreclosing the property through the
legal system. In Texas, you have just one year to
file a foreclosure lawsuit against a residential
property, otherwise, the lien will fall away.
8
File Your Lien Online on
texaseasylien.com
mail_at_texaseasylien.com
mail_at_texaseasylien.com
611 W 14th St Austin, TX 78701
1 (866) 406-5436
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