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How to release a lien on the lot for the cost of the future house that builder has never built- cost $340, 492.00

TexasLien Releases

Builder in Texas - Tilson put mechanical's lien on the lot for the cost of the future house before the date of the planned start. They never built the house, increased the price $6500.00 above the contract price 2/2 increases in prices/?/. I lost almost 11K due to all the preparations they wanted me to do like clearing the lot, water and electricity service, septic permit, survey, deposit for the builder and HOA and etc. I would like to sell the lot and called them with question why I have that lien on the lot. The answer - we had cost with your plans and with the crew that was checking the lot. We were waiting for seven months for them to start building, they kept loosing documents that we had signed again and again. We sold house in San Antonio and were loosing money paying rent while waiting. Finally I sent the letter cancelling the contract since my husband was very sick with bone marrow cancer and we had to buy some house to be free from dealing with that builder and take care of my husband disease and let him enjoy the new house for a while while he is still alive. What am I supposed to do? How force them to release that lien?

2 replies

Mar 13, 2020

If a contractor has filed a mechanics lien for the full value of their contract before actually performing that work, then that lien will probably be invalid and unenforceable. Mechanics liens are only available to those who have performed work which has permanently improved the project property but gone unpaid for that work. Using a mechanics lien as a preventative measure before work even begins is generally illegal. Plus, even where a lien is proper, filing in excess of what's owed could invalidate a lien all by itself. Texas has very serious penalties for wrongfully filed liens. If a contractor has knowingly or willfully filed a lien that's obviously improper, the could be on the hook for damages of $10,000 or the actual damages caused, plus attorney fees (whichever amount is more), and criminal penalties are on the table, too. So, it's easy to see how an owner can force their contractor to remove their lien claim. By threatening to pursue legal claims for an improper lien, an owner can (rightfully) push their contractor to release the lien. And, doing so via an attorney can help pack a little more "umph" into that threat. If you're facing an improper mechanics lien claim, it'd be wise to consult a local Texas construction attorney about how best to fight that claim. As mentioned above, their help in demanding the release of the lien can be quite valuable. And, if the lien is obviously flawed, then the attorney can help with challenging the lien's validity.

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May 26, 2022

We signed a Mechanics Lien with Tilson with the verbal understanding the building process would be 12-14 mo total from the first meeting. We are in our 7th mo & have just been told it will be 18-24 mo before the house will be started & completed. We have no approval on plans from our HOA & ACC and no Start Date. Tilson says build will be Mon of 320 days to build house. They put Mechanic Lien for total construction amount on our lot. How can I get out of this now? Also paid $3k deposit as well as around $5k for utility hook ups which are not completed. Help please! Kathy 214-808-8570

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