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Filing a lien earlier that 3 months after the last work was performed

TexasLien Deadlines

Am I able to file a lien on the job 170508 now, even though the last work was performed last month? If so, would I be filing it on the entire amount owed of $166,389.99, or would I only be able to include the amount that has been sent 2 and 3 month notices for?

2 replies

Dec 18, 2019
First, it's worth mentioning that the state of Texas doesn't require that a claimant complete their work or stop working in order to be able to file a mechanics lien. So, it's possible - and not necessarily uncommon, for a claimant to file a lien as they're working on the job. Further, note that monthly notice deadlines are just that - deadlines. And, they can typically be sent a little earlier than the 15th of the requisite month, if need be. As for whether filing a lien without notice is allowable - there's probably a fair argument for a claimant that since the deadline to send notice hasn't passed, filing the lien before the notice is acceptable. Still, the safer way to proceed would generally be to send the notice before pursuing a lien claim. And, since the monthly notice doesn't impose any timeframe for which a claimant must wait to make their claim, then the claimant could probably follow up with a lien shortly after the claim is filed.

Filing a mechanics lien should usually be the last resort

On top of all that, keep in mind that mechanics lien claims should not be lightly made. These liens are the nuclear option for situations where the payment dispute has gone past the point of no return. And, other recovery tools - including monthly notices - are helpful for recovering payment. Plus, if other attempts are unsuccessful, then a mechanics lien claim could still be made (assuming the deadline hasn't passed). With that in mind, let's look at a few recovery tools and how they work to force payment.

Invoice reminders

Invoice reminders make a lot of sense when a payment dispute is in its infancy. When a customer is running late on an invoice, but when it seems premature to make a big stink out of things, an invoice reminder can be that gentle nudge in the right direction to try and force payment on the invoice.

Monthly notices

It sounds like you're pretty familiar with monthly notices, so I won't talk about the deadlines or requirements. But still: Monthly notices are powerful payment recovery tools, in their own right. Monthly notices don't act like preliminary notices. They're not a friendly "Hello, I'm working on this job." Rather, they're statements that payment is due and owing, they're a warning to the owner and/or GC that a lien claim could be on the table if payment doesn't come, and they're a license for the owner to withhold payment from the contractor. Because of the above-mentioned factors, and because of the immense power of mechanics liens, monthly notices should be seen as a recovery tool, not just another notice requirement.

Notice of Intent to Lien

A Notice of Intent to Lien acts as a step past a monthly notice, but a step before an actual lien filing. A Notice of Intent to Lien lets recipients (usually at least the customer and the property owner) know that if payment isn't made and made soon, a claim will be filed. And again - because mechanics liens are so powerful, the threat of lien can get the job done without having to go through with a lien filing. More on these notices here: What Is a Notice of Intent to Lien and Should You Send One?
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Dec 18, 2019
Thank you for this thorough explanation. Good Stuff. I have already sent a NOI and all notices. We just received a few payments, so I am going to hold off a bit more before I decide if I want to file the lien or not.
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