Thank you so much for answering my question of $76k invoice, Mr. Erikson! Sorry it's not a homestead, it's my small rental medical office building in DFW area, I am currently not living in Texas. Will this make a difference? We documented the building condition this weekend, it was worse than we thought. The contractor also sent the invoice to a lien agency (?), they have been sending threats (to sue us and file lien, etc.) non-stop since last Week. 3 local contractors have told me they removed way too much from the building.
Hello!
You not living in Texas will not make a difference. The commercial nature of the property will make a difference. If it is a rental, the affidavit needs to claim a leasehold lien, not just the regular lien.
The contractor probably sent the lien to a debt collector. That appears to be a new thing these days. A lien is not a debt. It is a cloud on title. A lien does not become a debt until it is enforced in District Court and a judgment is given. In the situation you described, a construction lawyer would argue offsets.
Basically, the contractor is claiming they are owed one amount and you would counter claim them and show that the work was so bad that you had no choice but to hire another contractor to fix it and therefore, the money you spent the subsequent contractor must be netted against any money the first contractor perceives as being owed to him. It may be possible to reduce him to zero.
As far as the debt collector goes, we have now had a few successes in getting them to back off. Once you tell them they cannot collect on a lien as a debt because a lien is not a debt, they start getting really settle happy. You can force them down to zero and order them to cease and desist but that does not make the lien go away.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com
It is not unusual for an incompetent contractor to file a mechanic's lien to extract money from an owner. The legal analysis would start with a review of your contract, and then extend to any communications which have occurred, and to any documents pertaining to the project.
You should consider retaining a construction attorney to evaluate your legal situation and to provide advice. Being proactive can help avoid a much more expensive legal problem.
Good luck.