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How do I go about sending monthly notices for a project on multiple properties in TX?

TexasPreliminary Notice

We have a project with a single contract and a single invoice for work we are doing on a few different lots. Would we only need to send one monthly notice for this since theres only one contract/invoice? Or would we need to send separate monthly notices for each property even though it's for the same invoice?

1 reply

Jan 9, 2019

That's a great question, and it's one we get fairly often at the Construction Legal Center. Before diving in too deep - it's important to recall what purpose monthly notices serve. For one, they notify project participants that payments are falling behind on the project, and they can empower an owner and/or contractor to step in and correct the issue. But also, monthly notices preserve the right to lien. So when deciding whether one notice is needed or multiple, it's important to look to whether one lien could be filed on the project, or if multiple would be needed, if push came to shove. First, as a general note, the absolute safest way to secure payment is to file multiple liens when multiple properties are involved - which would mean multiple notices would likely be required in order to preserve the right to lien those separate properties. We discuss that idea here: Of course - that's a very conservative approach. Each state has its own rules, and in many states, one lien can be filed against multiple properties under certain conditions (and, where only one lien would be necessary, monthly notice would only need to be sent accordingly). We discuss that idea in this article: Getting Paid on a Project with Multiple Properties. Looking to the Texas Property Code - § 53-022 looks to clear things up a bit. Under § 53-022(a), "The lien extends to the house, building, fixtures, or improvements, the land reclaimed from overflow, or the railroad and all of its properties, and to each lot of land necessarily connected or reclaimed." Further, § 53-022(c) reads "A lien against land in a city, town, or village extends to each lot on which the house, building, or improvement is situated or on which the labor was performed." And finally, for those more rural projects, § 53-022(d): "A lien against land not in a city, town, or village extends to not more than 50 acres on which the house, building, or improvement is situated or on which the labor was performed." Thus, based on § 53-022, it would appear that when work is performed on one project that spans multiple lots or parcels, one mechanics lien could be filed for all work performed on those lots or parcels. Where there is one contract executed for all work performed on those multiple lots/parcels, it would seem that sending notice for the project as a whole might be appropriate. Of course, this is under the assumption that the properties are owned by the same person/entity - and if the ownership of those lands is varied, things could become less clear.

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