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Does Texas Law prohibit Contractor from demanding the release of a lien prior to me receiving payment?

TexasConstruction ContractMechanics LienRetainage

I'm a Subcontractor and have not been paid a partial progress payment or retainage on a project. I filed a lien on the project, in the Subcontract between myself and the General Contractor there is a clause that I must release all unsatisfied liens or claims prior to Final Payment. Is this enforceable in the State of Texas?

3 replies

Dec 31, 2020

Hello,

At the time of payment, you should be able to produce a copy of a signed and notarized Unconditional Waiver on Final Payment. If they pay you with a check that hasn't cleared, you may provide a Conditional Waiver on Final Payment instead. You do not have to release a lien until then. Absolute worst case scenario, there's a little argument and you provide a lien release and you sue them if their check doesn't clear.

E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com 

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Dec 31, 2020
They can ask you to sign a conditional release. The condition is that they actually write a check that clears the bank.
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Jan 7, 2021
Here is a sample of the release form Texas Final Conditional Lien Waiver form
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