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How to remove lien

TexasLien ReleasesMechanics Lien

while trying to sell an inherited property from my late father. I had an offer to buy my house for 570k to a guy who was going to flip it for profit. We did not have a legal contract. After finding problems with the house I sold it to someone else for 480k. The original guy now says I owe him 80k and has filed a mechanics lien on my house blocking me from closing with the other contract. What do I do now

4 replies

Jan 5, 2023

The legal analysis would start with a review of the mechanic's lien. A valid mechanic's lien would not arise under the circumstances that you describe. It could be that the want to be buyer filed a notice of lis pendens, but that would be invalid under the circumstances.

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 if a lien, it has properly and appropriately occurred.

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. 

You should consider preparing a letter to mail by certified mail, return receipt requested, to the want to be buyer to set out the facts and to demand the relief that you want. Make sure that your letter is professional and business like as it may be evidence later.

Good luck.

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Jan 9, 2023

Did he do any work on the house? If not no lien rights

Did you have a signed “contract” to sell him the property? If so was he still in contract? If not had the contract terminated?

If all of the above apply then you will need to file a suit to remove the lien since he is trying to scam you

Filing this type of affidavit is a typical scam run by “flippers” to force you into selling them the home as they know that it will cost you money to hire an attorney to sue them to remove the cloud on your title

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Jan 9, 2023
The title company may allow you to bond around the claim and still close this transaction. If that is not an option, you will have to file a lawsuit for removal of a fraudulent lien. The good news is that the statute provides that a property owner is entitled to recover their attorney’s fees and statutory damages of up to $10,000 for wrongful filings like this. If you lose the sale of the house over the delay, those could be additional damages you could claim. The negative is that you will need to retain an attorney and the process takes about 90-120 days to resolve, depending on the court’s calendar.
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Jan 10, 2023
If you are in Texas, although a verbal agreement is binding, any transaction involving the sale of real estate needs a written contract to be enforceable. In light of this, I do not see the viability of the claim against you. Please bear in mind that I am saying this without knowledge of all the facts.
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