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how does a mechanics lien work

Own a fire /water/mold restoration company. We rendered water mitigation service for a home owner that is insurance based, and we have received 6 of a $12,000 bill. We have all documentation needed to prove service has been rendered. How much time do we have?

1 reply

Jan 29, 2018

In Texas, the mechanics lien & notice process (and the associated requirements) can be fairly complex. Generally, the notice requirements depend both on 1) the project type; and 2) the party with whom the potential lien claimant contracted. Parties who contracted directly with the property owner are not required to send any notice prior to filing al lien claim. For everyone else, the notice requirement changes according to project type and contract tier. For residential projects, all claimant without a contract with the property owner must provide notice to the owner and prime contractor by the 15th day of the 2nd month following each month that work was performed for which they remain unpaid. For non-residential projects, sub-contractors must send notice by the 15th day of the 3rd month following each month work was performed and unpaid, and sub-subcontractors must send notice by both the 15th day of the 2nd month and 3rd month following each month work was performed and unpaid.

The deadline to file lien is determined by whether or not the project was residential in nature. For residential projects, the deadline to file a lien is the the 15th day of the 3rd month after labor or material was last furnished; for non-residential projects, the deadline is the the 15th day of the 4th month after labor or material was last furnished.

Note, however, that additional requirements exist for residential homestead properties. In order to fix a Texas mechanics lien on a homestead, the person who is to furnish labor and/or material under a contract with the owner must execute a written contract setting forth the terms of their agreement subject to the following requirements:

1) The contract must be executed before any labor or material is furnished
2) If the owner is married, the contract must be signed by both spouses (even if the property is in the name of only one spouse)
3) The contract must be filed with the county clerk of the county in which the homestead is located

If the potential lien claimant did not contract directly with the property owner, the party who did contract with the owner MUST have followed the above requirements, or nobody on the project is granted mechanics lien protection. Additionally, specific language is required to be present on the face of the lien affidavit.

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