Hello Can a contractor place a lien on a property if no work, labor or materials have been started on the project? Nothing has started but just the permit process with the city?
Probably not. The requirements of constitutional and statutory liens differs somewhat, but in a nutshell there has to be physical alteration or work performed on the property. This is my summary of the law, and I am certainly not advising you to give up or forego consulation with an attorney, as this statement is very generalized.
Now, while a lien may not be available, you have other potential legal remedies such as breach of contract or quantum meruit where you have either signed a contract or performed work and the owner/superior contractor is attmepting to pull out of the deal.
I'd be happy to discuss this with you in greater detail. I do not charge for initial consultations.
Very best,
Ben House
281-762-1377
ben@houseperron.com
For a contractor to have the right to file a mechanic's lien, there must be a debt owed for work performed that benefited the property. An architect or engineer theoretically could have lien rights with no actual work at the project site, but not a contractor.
Filing an invalid lien or an overstated lien could subject you to liability under the Texas Fraudulent Lien Act, and you could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. Facing such a claim would add insult to injury.
Retain a construction attorney to evaluate your legal situation and to provide advice.
Good luck.