Lien Law For Texas: We filed the lien for the mitigation portion however the repair work was just completed. If we release the lien we recently filed, and decide to record the lien later, do we lose our rights on the money on the first lien because we have filed a release of lien ?
Hello,
Don't release anything if you have not been paid for it. If you weren't paid for July, don't release the lien just because you finished work and were paid a portion for August.
Your accounting records need to be phenomenal and there needs to be clear notice of where funds are being applied because you will be challenged on it during enforcement.
E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com
The legal analysis would start with a review of your contract, and then extend to any communications (including notice letters) which have occurred.
You do not mention what sort of project is involved (residential or commercial), or whether the project involved an owner's homestead property.
If the property is 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.
Good luck.