Texas construction lien law

How does a mechanic lien work in Texas?

Once filed and perfected, a mechanic’s lien creates a security interest in the property for the amount the creditor is owed. The lien is not against the owner, it is against the owner’s property. If there is more than one lien against the same property, the law determines the order in which each lien is paid.

Can a contractor file a lien without a contract in Texas?

A very similar question was asked about a Texas situation…and as we saw above, Texas does require contracts be in writing. However, presuming that the subcontractor on the project has a written contract with someone, they can still file a lien even if they don’t have a written agreement with the property owner.

What is a constitutional lien in Texas?

If you have a direct contractual relationship with the owner, you will be considered to be an “original contractor” and you may have a constitutional lien . The constitutional lien attaches to the “building” or “article” you improved. The beauty of a constitutional lien is it is self-executing.

How long does a general contractor have to file a lien?

within 90 days

How long does a lien stay on your property in Texas?

ten years

Do mechanics liens expire in Texas?

In Texas , a mechanics lien expires after 1 or 2 years, depending on the type of project. A lien claimant will need to enforce their mechanics lien before the deadline.

Can you refuse to pay a contractor?

You need to make sure the contract legally allows you to withhold payment in certain circumstances. For example in the construction industry, the security of payment laws do not allow contractors to withhold payments to subcontractors just because principals are also withholding payment to contractors .

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Can a contractor sue me without a signed contract?

First of all, you can sue your contractor for breach of contract , even without a written contract , and she can sue you as well. In other words, the two of you may have created an oral contract , on the basis of which either of you can sue .

What happens if a contractor does not pay a subcontractor?

If a general contractor refuses to pay his subcontractors , they can make a claim against the payment bond. The surety company will pay out the subcontractors for at least part of their money and take the contractor to court.

How do I file a constitutional lien in Texas?

To claim a constitutional lien , you need to file a lien affidavit as you would for a mechanic’s lien . Recording your lien in a timely manner is important, otherwise the property you’re trying to put the lien against could be sold before you file .

How do you put a lien on a vehicle in Texas?

Add or Remove a Lien on a Vehicle To add or remove a lien on your vehicle title , visit your local county tax office. The title fee is $28 or $33, depending on your county, and must be paid at time of application. Please contact your local county tax office for the exact cost.

How do I file a lien in Bexar County?

Deed/ Lien Information To record it through the mail, send the original document to the Bexar County Clerk’s Office in the Courthouse. The recording fee is $26 for the 1st page and $4 for each additional page (per document). Acceptable forms of payment are cash, check, or money order.

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How long is a construction lien good for?

one year

What happens if a contractor puts a lien on my house?

Legally, an unpaid contractor , subcontractor or supplier can file a lien (sometimes called a mechanic’s lien ) that could eventually force the sale of your home in place of compensation. You refuse to pay your contractor for work done on your remodel, and the contractor files a lien on the house for services rendered.

Is there a time limit to file a lien?

Each province has different rules about the time limit of a lien . In Alberta , for example, your lien is valid for 180 days from the date the lien was placed. If your customer refuses to pay within the first 30-60 days, legal action or collections may be an additional action you want to take to help enforce your lien .