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Lien law time frame Texas

We have a project stemming from Hurricane Harvey. The insurance company has been slow in approving. We finished the demolition in December. We have the clients contents in storage and have been paying monthly storage fees every month since we started. Yesterday their Mortgage company called and asked if we had been paid. We have not received any funds from this client. Can we still lien the contents, and what are our options for the demolition work? We know they have been paid for our services.

2 replies

Oct 29, 2018

That's a good question, and Texas lien law can really be a chore to navigate. First - for Texas residential projects, the mechanics lien deadline is no later than the 15th day of the 3rd month following the month in which the claimant last furnished labor and/or materials. For further insight into how this deadline is calculated, zlien's Payment Rights Advisor is a helpful tool. Note, of course, that if the property is Homestead property, other requirements will apply (specifically, 1) The contract must be executed before any labor or material is furnished; 2) If the owner is married, the contract must be signed by both spouses; 3) The contract must be filed with the county clerk of the county in which the homestead is located). You can learn more about mechanics liens against Texas Homesteads here: Texas Mechanics Lien on Homestead Property: Everything You Need to Know. Further, it's also important to know exactly what a mechanics lien attaches to. Mechanics liens attach to the underlying real property where work was performed. Meaning, when someone providing labor and/or materials to a construction job goes unpaid, they likely have the right to tie up that specific project property. However, mechanics liens do not grant security rights in movable property related to the project. Of course, this does not necessarily mean that a claimant cannot take security rights in an owner's movable property or that recovery can't be made - but a mechanics lien is very likely not the appropriate remedy for movable property owned by the project owner which lies in the claimant's possession. Finally, regarding whether demolition work gives rise to mechanics lien rights, Texas is pretty clear on that front: under § 53-021(e), a person who furnishes labor or materials for the demolition of a structure on real property will have lien rights. Recall, though, that if a claimant was hired by someone other than the property owner, Texas monthly notices may be required prior to filing a valid mechanics lien.

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Feb 11, 2020

We stored and delivered a shipment to a company in Allen, TX 63304. They agreed to our charges and now refuse to pay, and have only responded to two of 15-20 emails and answered no phone calls. Last email said they intend to file bankruptcy. We want to put a lien on their property and the equipment we delivered. How do I do this?

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