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I filed a lien and debtor is refusing to pay

TexasLien Foreclosure

The property changed ownership after the lien was filed. My invoice is still not paid and the lien is still in place. What do I need to do next?

2 replies

Dec 3, 2021

Hello!

You file suit against the former property owner and the new property owner. The former property owner because they were the ones that owed you money and the new property owner because the Constitution of the US requires it. But also it will trigger a defense by the title company that guaranteed the title to the new buyer. They have to defend the lawsuit and if you lien was proper and properly filed, they will have to pay you as well.

E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com

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Dec 3, 2021

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 you have filed a lien, you have properly and appropriately done so.

Filing an invalid lien could subject you to liability under the Texas Fraudulent Lien Act, and you could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. Facing such a claim would add insult to injury.

The legal analysis would start with a review of your contract, and then extend to your unpaid invoice(s) and to any communications which have occurred, and to the lien you filed, and the notice of lien filing that should have been mailed by certified mail.

Good luck.

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