In the state of Texas, what is the statue of limitations on lien filing on a commercial remodel project? As the general contractor, we are trying to determine when subcontractors can no longer file a lien on us or the property owner.
Hello,
15th day of the fourth month following completion, termination, or abandonment of work on the project under the contract.
The subcontractors are required to send notices to the GC and the Property Owner starting the second month following completion, termination, or abandonment of the project.
Those are the simple answers.
E. Aaron Cartwright III
214.799.0776
Aaron@EACLawyer.com
Texas mechanic's lien laws are complex and convoluted. You should retain a construction attorney to evaluate your legal situation and to provide advice.
You may consider discussing with the owner the prospects of filing an Affidavit of Completion under section 53.106 of the Texas Property Code. Under Section 53.106, an owner can shorten the time for the filing of mechanic's liens against the funds that the owner is retaining to 40 days after the Affidavit of Completion is filed.
An owner and the owner's property are only liable to subcontractors or suppliers for money paid to the original contractor following receipt of a funds trapping notice or for failing to withhold retainage for the required period. If an owner has paid out the contract funds properly in accordance with Chapter 53 of the Texas Property Code (progress payments and retainage), neither the owner nor the owner's property are subject to lien liability.
Good luck.