I am the homeowner. I hired a GC to renovate my house. The scope of work was not completed, what was completed was poorly done and needed to be redone. I refused to pay the last bill (already paid $38,000) because he refused to do the rework. He filed a mechanic’s lien in January 2020, but has not sued me. When will the lien expire so that I can sell this house?
I assume that the renovation is 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 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.
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.
The statute of limitations for a contractor to enforce a mechanic's lien on residential property is about one year. It appears that more than a year has passed, making the lien invalid for another reason.
The lien does not "drop off" by itself. Retain a construction attorney to evaluate your legal position, and to provide advice.
Good luck.
Keep track of your costs for completing/correcting the work, and take photographs before and after the remedial/completion work. The contractor could make claim against you if you do file a suit (the statute of limitations for breach of contract is four years), and you need to have the evidence ready both to defeat the contractor's claims and to support your own.
Good luck.
Hello,
It is residential so the limit is one year after completion, termination, or abandonment of the work under the contract. You can file with the court to have the lien removed so you may refinance or do whatever you need with the house.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com