Menu
Home>Levelset Community>Legal Help>Can I file a mechanics Lien after the property owner sells the property? This is for Multifamily property.

Can I file a mechanics Lien after the property owner sells the property? This is for Multifamily property.

TexasMechanics Lien

Hello we are contractors for Multifamily properties. If the Owner sells the property without paying our bills do we still have the right to file lien? Thank you

1 reply

Jan 25, 2022

You really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that if you file a lien, you have properly and appropriately done so.

Filing an invalid 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.

Theoretically, a contractor who contracted directly with the owner can file a mechanic's lien by the 15th day of the fourth month after the contract was completed or terminated or breached, etc. Also, the contractor could have Texas Constitutional lien rights which do not have a statutory deadline.

So, retain a construction attorney to evaluate your situation and to provide advice.

Good luck.

0 people found this helpful
Helpful