How do I file a lien on retention in Texas

12 months ago

We have tried to collect the retention on one of our projects. It is complete and we billed on 11/25/18. How do we go about filing a lien on this

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
Senior Legal Associate Levelset
355 reviews

That’s a good question! Filing a lien on retainage is done much in the same way that a regular lien filing is made – by filing a mechanics lien document (called an “Affidavit of Lien”, in Texas) with the county recorder of the county where the construction work was performed. Keep in mind – there are filing fees associated with a mechanics lien filing, so be sure to contact the county recorder beforehand in order to double check what the fee will be for filing a lien on retainage. Further, keep in mind that there are notice and deadline requirements in order to be able to file a mechanics lien in Texas – and you can learn more about those here: Texas Lien and Notice Overview, FAQs, and Statutes.

Before deciding to file a mechanics lien, though, it’s worth mentioning that other recovery tools might be successful without the need for an actual lien filing. Specifically, because a mechanics lien is such a powerful tool, merely threatening that a lien will be filed can be an effective payment recovery tool. By sending a document like a Notice of Intent to Lien, a claimant can show their customer and/or the property owner that they’re serious about getting paid, and that a lien will be filed if push comes to shove. Property owners will want to avoid the potential of a lien claim, and that can help put extra pressure on a customer who’s been reluctant to make payment. For more on that idea, this article has some great information: What Is a Notice of Intent to Lien and Should I Send One?

For more information on how exactly to file a Texas lien, this guide has great info: How to File Your Texas Mechanics Lien.

I hope this was helpful! If you have other questions, please feel free to come back and post another question at the Ask an Expert Center!

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
Your answer or comment:
Are you a Registered Expert?
You are not logged in and will be posting
anonymously. Log in Now
Get answers from construction attorneys and payment experts
120 Character Limit