We completed a rehab at a home. Client did not pay up so we filed a mechanics lien. Client has a sale pending but we still have the lien in place. Is there a way to make sure we are paid before owners change hands?
If the sale goes forward, you should be paid out of the proceeds by the title company. If the sale goes forward without a title company and you are not paid, you can bring a lawsuit to liquidate the property for the proceeds against the pruchaser. Most likely the sale will not go forward and the current owner will attempt to resolve the dispute, assuming the lien is property attached to the property in through the real property records. If the amount is large enough, you may wish to ask an attorney to review the lien.
If the property is/was the owner's homestead (meaning that the owner owns the property and lives there) then your contract with the owner would have to satisfy the requirements of Texas Property Code sections 53.254, et seq., which requires specified homestead lien warnings, signing by husband and wife, and recordation in the county property records.
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 file 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.
If your mechanic's lien was appropriate and properly filed, and has not lapsed due to the passing of the statute of limitations, then the lien would cloud the title and the title company should flag the lien, and work to resolve the matter.
Good luck.
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