Home>Levelset Community>Legal Help>How do I know if a GC filed the contract on a Texas homestead project?

How do I know if a GC filed the contract on a Texas homestead project?

I understand that liens cant be filed against a Texas homestead property unless the original contract was signed by both spouses and the contract was recorded prior to work. Is there anything that I can do as a subcontractor to find out if that has occurred, or protect myself if it hasn't.

1 reply

Feb 17, 2020

The Texas mechanics lien rules for homestead projects can be pretty demanding. First, asking the original contractor whether they filed their contract should be a good start. Additionally, or alternatively, determining whether their contract was recorded should be as easy as checking the property record. The contract must be filed with the county recorder's office, and it will tie to the project property directly. If the original contract hasn't been filed, asking them to file the contract in order to preserve everyone's lien rights might be an option. Ultimately, it's not exactly clear whether the contract must be filed before work begins or if it might be acceptable to do so during the project.

Even if Texas mechanics lien rights aren't available, there are recovery tools that can help

For one, sending monthly notices can be a great payment recovery tool - even if those monthly notices won't actually preserve the right to file a mechanics lien later on. Monthly notices put an owner on notice that payment hasn't been made, as required, on the job - and it will inform them that there will be fallout if payment isn't made. Sending invoice reminders to your customer can also be helpful, too. Sometimes, a gentle push in the right direction will be all that's needed to get paid. Or, something less gentle - like a demand letter - can help escalate a dispute and take a more forceful approach in demanding payment. Finally, if push comes to shove, pursuing legal claims (like breach of contract, a claim under the Texas prompt payment laws, etc.) or sending a debt to collections might be useful. Further discussion on that front here: Can’t File a Lien? Here Are Some Other Options For Recovery.

0 people found this helpful

Helpful