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How does a bond work against a mechanics lien in Texas

TexasBonding Off LienMechanics Lien

I have a mechanics lien on my home that was filed by someone I don't know or have any type of agreement with. Apprently the contractor didn't pay him, yet I paid the contractor The home is not my homestead. If I file a bond around this lien. How does this work exactly? Can the subfile a claim against the bond? If so, then what happens? Do I need to make the sub aware that I filed a bond so I can sell the house?

1 reply

Apr 1, 2022

You really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that the lien has been properly and appropriately filed.

Filing an invalid lien could subject the filer to liability under the Texas Fraudulent Lien Act, and the filer could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. 

Posting a bond to indemnify against lien will remove the lien as an encumbrance against the real property, and the lien will attach to the bond. The lien claimant would then have to file suit against the general contractor and the surety within one year of receipt of notice of bond filing. The county clerk is charged with providing notice of lien filing to the lien claimant.

If you paid the general contractor without notice of the unpaid subcontractor, you may have no liability for the claim. Retain a construction attorney to evaluate your legal situation..

Good luck.

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