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Can a lien be placed on a property when no work has started?

Texas

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?

2 replies

Jun 4, 2021

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

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Jun 9, 2021

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.

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