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How do I dispute a lien on my property for unpaid contract work that my tenant got done without my permission?

My tenant apparently got some contract work done on my rental house. She did not inform me or get my permission (which she should have done according to our rental contract). She was evicted a few months ago and now she is absconding and we're unable to trace her. She did not even pay me a few months' rent and also abused the property. So she owes me also a lot of money as it is. A contractor turned up one day who says she had him do some work on the house and did not pay him. I don't know anything about the work he says he did. Apparently he went to small claims court on her, and she was a no-show. So even though he technically won the case, he doesn't know where she is to get the money from her. Now he's threatening to put a lien on the house to recover the payment from me. For a job that I did not authorize or even know about. Can he put a lien on the house? And if he does, what can I do? (We have already lost a lot of money on this property)

2 replies

Oct 29, 2019

Generally, a contractor providing work to a tenant will only be able to file a mechanics lien against the landlord's property where the landlord has also authorized the work in some way. Otherwise, lien rights will typically only exist to the extent of the lessee's interest in the property (i.e. their lease may be lienable). But, there's a lot going on here. Let's break things up into a few separate ideas that I think may be relevant.

Texas mechanics liens have strict deadline requirements

The deadline to file a Texas mechanics lien is strict - and if the deadline comes and goes before a lien is filed, then the claimant won't be able to file a valid and enforceable lien - regardless of whether that lien would have been valid earlier on. For residential construction projects, this deadline will be the 15th day of the 3rd month following the month when the claimant last furnished labor or materials to the project. So, if work was completed several months back, then a lien claim would likely be untimely and a valid and enforceable lien couldn't be filed - regardless of what rights may have existed beforehand. For further breakdown, you can find a helpful chart here: When is the deadline to file a Texas Mechanics Lien?

Texas mechanics lien rights when the claimant was hired by the tenant

In order for mechanics lien rights to arise against the property, itself, the owner of that property must authorize the improvement. So, when hired by the project's lessee, and when the owner hasn't authorized the improvement, then a contractor will generally be unable to file a valid and enforceable mechanics lien against the project property.

Claimants can typically get their liens filed, even where the claim isn't appropriate

Keep in mind that a claimant will generally still be able to get their lien claim filed, even when there are issues with the claim. County recorders' offices typically have neither the authority nor the bandwidth to investigate each claim that's made. So, it's possible the lien is filed. But, when a mechanics lien is filed which has issues, errors, or is invalid for some reason - a property owner can challenge that lien claim and have it removed from the property.

How to prevent a Texas mechanics lien filing

It's hard to procedurally block a lien before that lien is even filed. But, if an owner can show the would-be lien claimant why their claim would be flawed, that might help to keep them from filing a lien. Further, it could also be helpful to warn the claimant that the lien would be vigorously fought and that the claimant may even end up being liable for damages if the lien is filed. When it looks like a lien may soon be filed, it may be helpful to consult a local Texas construction attorney - they'll be able to review the situation more thoroughly and advise on how best to move forward. Additionally, this resource may be helpful: I Just Received a Notice of Intent to Lien – What Should I Do Now?

How to respond once a mechanics lien is filed

Finally, if a mechanics lien is filed against your property, there are some available steps to get the lien removed. I'll explain more below, but here's a helpful article: A Mechanics Lien Was Filed on My Property – What Do I Do Now? The fastest and easiest way to have a lien removed is to have the lien claimant release the lien themselves. If a property owner can point out the flaws in the filed lien claim and explain what damages may be in play for the lien claimant as a result, the owner may be able to get them to release the lien on their own accord. Further, if necessary, extending some sort of lien settlement offer may also make sense considering the potential costs of battling the lien. Alternatively, an owner can always bond off a mechanics lien filed against their property. If the owner secures a mechanics lien bond and files that bond with the county, the lien on their property will be discharged. The claim won't disappear - the claimant may still try and enforce their claim (file suit) against the bond. But, at least the property title will be free and clear. Plus, if there is a lien enforcement suit and the owner prevails, there's always a possibility the court might award the costs and fees associated with defending the lien claim and securing the bond. More on bonding off liens here: Primer on Mechanics Lien Bonds and Bonding a Mechanics Lien. Lastly, an owner can always challenge a filed lien via lawsuit. While not a preferred option, an owner can file an action to show why the lien is baseless and improper and potentially have that lien dismissed. And, when successful, an owner may be entitled to legal fees.

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Oct 29, 2019

Thank you very much. Appreciate the detailed information.

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