Home>Levelset Community>Legal Help>Can an equipment lessor file a mechanics lien in Texas if they do not have a written contract with the Property Owner? If the equipment lessor is hired by a Subcontactor, is that Subcontractor required to have a written contract with the Property Owner for the lower tiered parties to retain lien rights??
Can an equipment lessor file a mechanics lien in Texas if they do not have a written contract with the Property Owner? If the equipment lessor is hired by a Subcontactor, is that Subcontractor required to have a written contract with the Property Owner for the lower tiered parties to retain lien rights??
Is privity with the owner required to file a lien in Texas? Does the claimant need to have a written contract?
1 reply
Sep 12, 2017
Texas generally does not require a written contract in order to be able to claim a valid and enforceable mechanics lien, however, certain parties in certain situations do need to have a written contract.
Written contracts are required for all claimants in order to claim a lien against residential homestead projects, and architects, engineers, surveyors, and landscapers need to have written contracts on all project types. Other than those requirements, however, parties with no written contracts are still entitled to mechanics lien protection.
No "privity" or direct contract with the property owner is required for a lower-tiered party to claim a mechanics lien in the event of nonpayment. In fact, that ability to obligate more parties to make sure payment is made is a crucial part of the mechanics lien's power, one of the ways it can get claimants paid, and one of the reasons the tool was developed in the first place.
However, in order to retain the right to file a valid mechanics lien the claimant must meet certain requirements, including strict notice, timing, form, filing, and service requirements. More information on the requirements in Texas (which are confusing) can be found here: https://www.zlien.com/mechanics-lien/texas-lien-law-faqs/