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Can I use a lien waiver to collect payment if customer is using a credit card

I have a customer that is out of state and wants a roof installed on a home. He wants to make payment using a credit card. 50% upfront and 50% before we start second phase. I would like to use a Texas Conditional lien waiver for progress and for payment of final before the job is complete. How do I use the Texas lien waiver process to collect payment if they are using a credit card for payment?

1 reply

Mar 19, 2020

Hello! The first thing you should understand is that liens create an interest in the property. They do not compel payment. They allow lawyers to take actions against the owners against the property itself such as foreclosure. A lien does not, by itself, collect payment and the method of payment does not matter. Based on the scenario that you described, you would not need a lien. A lien is only for work completed and unpaid. In your situation, you are paid in advance. The first 50% of the work is paid up front so you would be expected to complete 50% of the job. The second payment is then made before you complete the second half of the project so you are expected to complete the second half. The only time you would use a lien in that scenario is if there was a change order (SIGNED CHANGE ORDER) and you had not received money for the labor and materials required to complete that change order. Then you have the right to lien against the property.

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