I have a signed contract by the homeowner to perform water restoration on a house located in Texas, contract states " we will bill homeowner insurance company however if the insurance company denies the claim then the homeowner is responsible for the bill". The work on the subject property was completed on Sept, 18, 2021. The claim was submitted to the insurance company on Sept, 20, 2021. Homeowner sold the house on Oct, 20, 2021. The insurance company denied the original homeowners insurance on Oct. 23, 2021. , I notified the original owner of my intent to file a mechanics lien to secure payment. I received a letter from Homeowner attorney stating that his client no longer owns the house, and filing a lien subject me to legal peril. Please advise
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.
So, retain a construction attorney and prepare suit papers against your customer. It does not matter that the customer sold the house.
Good luck.