The builder passed away and did not pay us for the completion of work. He was paid by the home owner.
1 reply
Jun 23, 2020
Generally, yes - those who perform work on a Texas construction project but don't get paid will be able to file a mechanics lien to secure payment. However, importantly: Subcontractors, suppliers, and others who were hired by someone other than the owner must have sent the appropriate monthly notices in order to preserve the right to lien. If those monthly notices were required but not sent, then lien claims won't be on the table. More on monthly notices here: (1) Texas Notice Guide and FAQs; and (2) How To Prepare & Send Texas Monthly Notices – Texas Notices Explained.
Additionally, if this was a homestead property, and if the GC didn't follow the required steps for work on a homestead, then mechanics lien claims wouldn't be available. Further discussion here: What are the notice requirements for Residential Homestead Lein in Texas?
If the necessary notices were given and necessary homestead steps were followed, then pursuing a Texas mechanics lien claim should be an option. You can learn about how to make Texas lien claim at the following resources: (1) Texas Mechanics Lien Guide and FAQs; and (2) How to File Your Texas Mechanics Lien – A Step by Step Guide.
Recovering payment without filing a mechanics lien
Even if a mechanics lien claim isn't available, there could be some other options that could lead to payment. For one, reaching out to whoever is in charge of the builder's business or their estate might be a good idea. They'll be responsible for settling the deceased's affairs - and part of that is paying the open business debts.
Alternatively, sending a payment demand letter to your customer could be effective. Demand letters will generally include specific legal threats (like breach of contract or a claim under the Texas prompt payment laws) and put a deadline for when payment must be made.
Further, actually pursuing those legal claims will be possible, even though the customer has passed away. Nobody likes to litigate, but it can be effective. Additionally, for claims under $10,000, small claims court could be an option.
Yet another option might be to send the debt to collections. That's not always a preferable route, but they're pros at what they do. You can find the right collector here: Find a Texas Collector.