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How to handle mechanics liens in Texas

On Behalf of | Dec 29, 2022 | Construction Disputes

A mechanics lien is a powerful tool that contractors in Texas use to ensure payments. It gives them a security interest in the property they are working on such that in case the property owner fails to pay, they can foreclose on the property and get their money back.

How mechanics liens work

Mechanics liens allow contractors and suppliers to place a claim against a property they have worked on, particularly when there are payment issues. This is often done through filing a Notice of Lien with the county clerk’s office in the county where the property is located.

The lien must include information about who filed it, the services provided, for how much money and when payment was due. The lien will remain active until released or satisfied by payment from the property owner.

When the county clerk records the mechanics lien, the contractor can begin foreclosure proceedings to collect their payment from the property owner’s assets or the sale of the property. According to Texas construction law, tradespeople or contractors must file a mechanics lien within four months of the job completion or when the work stopped, or it will no longer be enforceable.

Dealing with a mechanics lien on your property

If your contractor has served you with a mechanics lien, the first step you can take is to contact them and try to negotiate a payment plan or other arrangements that can be mutually agreed upon. This will help avoid the costly process of foreclosure and allow for an amicable resolution between both parties.

In some cases, it may be possible to challenge the validity of the lien by proving that either they didn’t work on your property or that you paid the money owed in full. If successful, the court can order the removal of the mechanics lien from the public record.

If all else fails, you may choose to get a loan or other financing to cover the payments due on the lien. This is typically done through a title company and will help you resolve the issue quickly so that you can move forward with your property projects.