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What legal remedies do I have to avoid a mechanic's lien against my home?

TexasLien ForeclosureMechanics Lien

I had an air conditioning repair made. Two years ago, the HVAC company gave me an oral bid of $1200 to replace the AC coil and recharge the unit. I recently had the work done and received an invoice for $2000. It was not itemized and when I questioned the increase, the contractor told me the parts had gone up in price. We did not have a written contract. I am going to pay what we agreed originally. Can he file a lien against my home for the balance without a written contract?

1 reply

Jun 24, 2021

First, the contractor is correct that prices have increased, even for the freon in the air conditioning unit. So, to avoid a dispute that could tax your mind and your wallet, consider negotiating a mid point payment.

If you do make payment, write in the notation area "Full & final payment for AC repairs" and the same thing on the back of the check above where the endorsement would be. If the check is deposited then you have a settlement at the amount of the check.

Concerning the prospects of a mechanic's lien filing, I note the following.

I assume that the AC work was for your house, and that your house is your homestead. For the house to be your homestead, the house has to be titled in your name and you must live there. The contractor that contracted with you is called the "original contractor" under Chapter 53 of the Texas Property Code (which governs the propriety of mechanic's liens). If the property at issue is your homestead, then for a contractor to be entitled to file a valid mechanic's lien against your homestead, he would have to comply with Chapter 53 of the Texas Property Code. Among the requirements are a written contract signed by the owners of the homestead (husband and wife), certain homestead warnings, and filing of the contract with the county clerk. Those formalities do not usually happen. Without them, any attempted mechanic's lien filing would be invalid.

If the original contractor did not properly perfect a homestead mechanic's lien contract, then no contractor, subcontractor or supplier can file a valid mechanic's lien against your homestead. You should write a letter by certified mail to the lien claimant to demand that no lien be filed or if one has been, that the lien be released, pointing out that the property is your homestead, and that the original contractor has not perfected a homestead mechanic's lien. If the lien claimant does not voluntarily release the lien, he could be liable for a fraudulent lien under Chapter 12 of the Texas Civil Practice & Remedies Code. Chapter 12 can award damages of $10,000 or actual damages whichever is greater, plus attorney's fees.

If a lien has been filed, you can also demand that the lien be released under Section 53.160 of the Texas Property Code, which provides for a summary procedure (no trial necessary) for the removal of an invalid lien on someone's homestead.

Good luck.

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