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Can I file a lien on a residential home owners association (HOA) that contracted my company tor painting services in TX?

TexasMechanics LienRecovery Options

My company was hired by an HOA of 350 single family homes in TX to paint curb address numbers on the front curbs of each dwelling. Terms stated in the proposal/quote were for 25% down and balance due upon receipt of invoice at completion. Work was performed over a 6 day period and final invoice delivered to our contact on the HOA board at the conclusion of work on day 6. I was told in writing that that time by the HPA board member that they would have their management company process the payment the following day. After following up each of the next 3 days with no response, I received an email from the HOA Board members stating that their management company was unavailable due to an office move and would not be able to process payment until the end of the week In addition, they included feedback in the email which for the first time mentioned concerns related to the work performed. Throughout the 6 days we were on site we were in regular communication with the board member regarding schedule and work status during which time we were told that everything looked great, Our deliverables were done to spec and of overall high-quality meeting or exceeding industry standards. We have offered to work with them on any perceived issues through our warranty process, however, we require payment in order to continue (a holdback of up to 20% of balance due would be acceptable by us to move forward, but they have yet to respond). What should we do at this point? Can we file a lien on the HOA for the $2700 they owe us?

1 reply

Jun 4, 2018
That's a really tough situation, and the fact that this occurred in Texas only compounds the issue. While this work may very well be lienable, this type of project puts a strain on mechanics lien laws. When multiple separate properties are involved that are owned by separate owners, typically, multiple lien claims will be necessary - even when work was authorized by one party (such as an HOA). What's more, Texas residential properties have specific lien requirements making a lien filing that much more burdensome, especially when the residential property is a homestead (more on that idea, here: Texas Mechanics Lien on Homestead Property: Everything You Need to Know). For mechanics liens to be an option, all requirements would likely have to be fulfilled for each property owner, and a separate mechanics lien would likely need to be filed on each property within the subdivision. Of course, that does not mean there is no recourse available - there are other options. Finally, it's worth noting that a Notice of Intent to Lien can be very effective, even when lien rights might not be an ideal option (or not an option at all). A Notice of Intent serves as a warning shot - if payments are not made, a lien will be filed. Considering the drastic implications of a lien filing, it will likely be too risky for a party in receipt of that notice to call that bluff. More on the document, here: Notice Of Intent To Lien May Be Enough To Get You Paid.
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