Texas Fraudulent Mechanics liens file on property Buyer #1 wanted to buy a lot that was contracted to be sold to Buyer #2 . Buyer #1 file a Texas Fraudulent Mechanics liens file on a vacant lot ABC on the day of closing a contract on Buyer #2 . Thus Title company not able to close the deal for Buyer #2 because Buyer #1 file lien on property ( vacant lot ) that Buyer #2 was about to close . Owner of lot ABC NEVER ask for Buyer #1 to provide any services . Buyer #1 is a contractor and this contractor purchase some lots from said land owner. Buyer #1 wanted to buy lot ABC but Owner already put under contract lot ABC with Buyer #2 . Appreciate your comment ,how to dismiss Buyer #1 in regards to a Texas Fraudulent Mechanics liens file on property . Thanks John
Owner should retain a construction attorney to review and evaluate the parties' legal positions based on the contract(s), facts, and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and Owner really needs to properly word a demand letter the the lien be released.
If no construction work has been performed for the property, Buyer 1 is not entitled to file a legitimate lien. There must be some sort of improvement for the property, and a contract with the owner or the owner's agent, for lien rights to arise.
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.
If Buyer 2 wants to arrange for the demand on Buyer 1, Owner would likely bless the effort.
Good luck.
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