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Can I file a mechanic lien?

TexasMechanics LienRight to Lien

I am a supplier. Material was picked up by customer and taken to his concrete yard. It was used in the manufacturing of concrete. What are our rights as the supplier to lien on the property? Customer is 60 days past due on account. Notified that account was being placed on hold, customer got upset and stated that they were going to pay the account off and no longer use PB as supplier, but did not give a time frame of payment. We are just trying to get ahead of the game in case they default on payment.

1 reply

Oct 14, 2020

Suppliers to suppliers can have confusing mechanics lien rights, as laid out here: Do Material Suppliers to Suppliers Have Lien Rights? As discussed in that article, the TX mechanics lien laws don't make it perfectly clear whether suppliers to suppliers will be able to file a lien - often, lien rights are limited to suppliers who will directly supply materials to the project property.

Still, under § 53-021 of the Texas Property Code, parties will be entitled to mechanics lien rights when their work is done "under or by virtue of a contract with the owner or the owner’s agent, trustee, receiver, contractor, or subcontractor." And, the term "subcontractor" is broad - it encompassess those who have provided labor or materials to the job. Meaning, another supplier might be considered a "subcontractor," and a supplier hired by that "subcontractor" might be entitled to lien rights against the project property. Based on some preliminary research, it looks like TX caselaw is mixed on the issue as well.

Note, of course, that mechanics liens won't attach to a customer's business or their property. Rather, the lien attaches to the property where the work was done. Further, in order to qualify for lien rights, you may need to show that your materials were actually used and incorporated on the particular project . And, keep in mind that there will be monthly notice requirements for preserving lien rights. Finally, it's also worth noting that the mere threat of a mechanics lien will often be enough to get paid: What is A Notice of Intent to Lien And Should I Send One?  

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