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Supplier demand for payment.

TexasMechanics LienPayment DisputesRight to Lien

Hi, I have used your service in the past but this question is a little different as I have a supplier demanding payment from me. What happened is I sent a CC authorization for payment to my supplier on 05/13/2019 for an April invoices on appliance's they installed at 3 address's in the same subdivision. The entire project has been complete and on the market since late May 2019. just 3 weeks ago my supplier reached out to me to say they never processed the payment in May and they need payment now, I explained the project account was closed but I would of course look at options to get it resolved.I also made payments to them in June & July for May installs which they did process but they never mentioned May outstanding. The issue I have is the account for the project is closed as I said so my only way to pay them is through the closing of each home or a personal check, I can have the title company look after each invoice as they close the homes and it will be pretty quick maybe 45/60 days I have offered this to my supplier but they sent me notice of a material mans lien yesterday. I tried to reason with them and explained its a situation not of my making as it was them who did not process the payment and I did not notice it on my end as its never happened before that supplier didn't take payment when it was due. Plus I have dozens of transaction each month on CC My question is how do I stop the lien as it completely unreasonable that they make a mistake and then refuse my only option to pay them. I haven't asked for a discount, I have not said I would not pay them, I have engaged fully with them. Thanks

1 reply

Sep 19, 2019
Was a mechanics lien filed on the property, or did the supplier send a notice that a mechanics lien will be filed going forward? Based on the above, I'll assume that a mechanics lien was filed on the property and that you own the property in question. Note, though, that both of those factors would have a strong impact on options for proceeding. And, note that Texas mechanics liens have a strict deadline, and if a lien filing hasn't taken place, then there's a chance the deadline to do so has passed. Anyway, let's look at an owner's options for removing a mechanics lien claim. Convincing a lien claimant to remove their lien The easiest and most efficient way to have a mechanics lien removed is to have the lien claimant remove the lien themselves. They might do this for a variety of reasons - like if it appears that there's a flaw with their claim, or if the owner has somehow assured them that payment will be made and that the claimant can release their lien. In a situation where both the owner and claimant accept that there's a debt owed, they can usually sort out some agreement where the lien will be removed. Executing a promissory note with the claimant, providing a personal guarantee, or entering into a settlement agreement that otherwise assures the claimant that they'll be paid may all be options for convincing a lien claimant to release their lien. We discuss some of those options in this article (though it's framed a bit differently than your situation above): Don’t Want to File a Mechanics Lien? Here Are 5 Other Options. Bonding off the filed lien Another option may be to bond off the lien. When a Texas mechanics lien is filed, a property owner is generally able to bond off the lien in order to clear the property title. Bonding off a lien won't make the claim go away - and securing a mechanics lien bond can be expensive. But, in a situation where a property owner must quickly have a lien claim removed from their property title, bonding off a lien can help to free up the property and allow for further negotiation or payment talks. Challenging the filed lien Finally, an owner can always challenge a filed mechanics lien, arguing the lien is improper for a variety of reasons. However, challenging a lien will prolong the payment dispute and will generally result in extra legal costs. But, it's still an option - and if an owner strongly feels that the mechanics lien is flawed or baseless, challenging the filed lien may be warranted. I hope this information was helpful! Here's an additional article that may be of use: A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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