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What rights does a homeowner have aginst mechanic liens

TexasLien ReleasesMechanics Lien

A contractor, who was fully paid for the service to a home, does not pay a subcontractor and now the sub is chasing the owner for less than $1500 and threatening a lien. Does the homeowner have any protection or leverage to challenge the sub? It seems all that is available online is how to protect the sub. But I want to know how to protect me as the homeowner if I have proof the contractor was paid.

1 reply

Jul 24, 2022

If the property is the owner's homestead (meaning that the owner owns the property and lives there) then the 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. 

The homeowner really should retain a construction attorney to review and evaluate the homeowner's 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 the homeowner really need to make sure that if a lien is filed, the filing has properly and appropriately occurred.

Filing an invalid lien could subject the filer to liability under the Texas Fraudulent Lien Act, and the filer could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. 

Subcontractors are required to provide notice to the owner to trap funds. If the subcontractor has filed to do so, the subcontractor could not legitimately file a valid mechanic's lien. 

A homeowner has other defenses to a subcontractor's claim. Again, consult with a construction attorney.

Good luck.

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