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A contractor in Texas only did half the work and is threatening with a lien. What should I do?

Property is located in Allen, Texas. I hired a contractor for home improvement and they stopped the work about 50% based on the contract. As per contract, i should pay them 16K. i have already paid 13K. Basically, they are overpaid. when i ask timeline, they threatened and filed a mechanics lien on my property. When do i in this situation?

1 reply

Sep 25, 2018

That's s frustrating situation. If the contractor has been paid $13K on a total estimated contract/project amount of $16K, but the work is only half completed, it doesn't seem fair or reasonable to resort to filing a mechanics lien.

Whether a mechanics lien is technically appropriate in such a situation is a complicated question. If the value of the contractor's work exceeds the amount s/he has been paid (potentially pursuant to change-orders, or other additions) it may be technically acceptable to file a lien.

In the event that there are no current amounts unpaid for work performed, it is unlikely that a contractor could claim a valid and enforceable lien. In that case there are a few options, the lien can be challenged (for formal or technical defects), suit can be initiated agains the contractor, the lien can be "waited out," or some combination thereof.

Liens, especially in Texas, have many specific requirements in order to be valid and enforceable. This is especially true if the property is a homestead (generally, an owner-occupied residence). In that situation, as well as the regular formal and timing requirements, the contractor must have a written contract with the property owner, the written contract must be signed by both spouses if the property owner is married, and the contract must be filed with the county recorded for the county in which the property is located. If all of this is not done, any subsequent lien will be invalid.

Texas provides for a "Summary Motion to Remove Invalid or Unenforceable Lien" under § 53-160, which requirements set forth therein. Additionally, § 53-157 provides additional ways to discharge a mechanics lien. You can read those specific statutes here: https://www.zlien.com/mechanics-lien/texas-lien-statute/

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