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What type of lien do we need?

We are in Texas. We hired a contractor to complete a small residence 868 sf, which the contractor said would be completed in about 3 months time. All money was paid up front in the course of 3 months time - after which regular work stopped. Since that time the contractor has gone months without work on site, and most of the interior finish out work is not done. We know the contractor has misused the money we paid him, he is out of funds and every month he may have a sub complete about an hour of work on site. It’s almost 1 year since we hired this contractor and we want to fire this contractor, cut our losses and hire someone else to complete this project. What type of Release Lien should we use to ensure his sub contractors cannot file a lien on our property is he hasn’t paid them in full?

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Feb 13, 2020

Texas is one of the few states that has waiver forms which are required by statute. So, to have a binding waiver, it's important to use one of the statutorily required forms. You can find a free, downloadable copy of each TX statutory waiver form here, if you scroll down the page: Texas Lien Waivers Guide, FAQs, and Forms. Still, it's important to select the right form. Generally, when no further work or payment is expected on the job, a final unconditional mechanics lien waiver will be appropriate. That waiver is immediately effective and it serves to show that all work on the project has been paid. Conditional lien waivers have their place, and their usually exchanged before payment is actually made. And, partial or progress lien waivers are helpful too - but they're best suited for situations where additional payments are expected. For a deeper look into the different waiver types, this article should be helpful: Texas Lien Waiver Forms & Guide – All You Need to Know. There, you can learn about all 4 of the Texas statutory lien waivers and determine what best suits your needs.

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