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Why am I receiving Texas propdrty code notice after job paid in full?

Why would a rebar lumber company continue to provide product to a contractor that doesnt pay yet is trying to get the unpaid bill from 2 months ago thru sending me a notice for lein on my house when I paid contractor in full for materials and work competed?

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Jan 3, 2020

There are a whole host of reasons that mechanics lien rights exist, one of the most crucial being that the construction industry heavily relies on credit. Unfortunately for vendors, it's completely normal to provide materials and supplies for a job despite payments coming slowly. Because of the risks that subcontractors, suppliers, and other vendors take on - every state in America has mechanics lien laws on the books that help these businesses bring their payment issues to the attention of property owners. And, in turn, those owners are able to sort out the payment dispute and make sure the businesses are paid in one way or another - often by putting pressure on the parties who failed to properly pass payments down the payment chain. For more on the purpose and reasoning behind lien rights: A Short History Of The Mechanic Lien.

Monthly notices are meant to benefit property owners

Monthly notice requirements were actually put in place to benefit property owners. If a subcontractor, supplier, etc. has gone unpaid on a Texas construction project, then they'll have to send notice to the property owner to show that there's a payment issue on the project. As a result, an owner should never be caught off guard by a lien claim out of the blue - which provides the owner the chance to resolve the issue before it gets out of hand. It's absolutely natural for an owner to be concerned when receiving a monthly notice. Still, the fact of the matter is that the notice helps to avoid lien claims or other legal disputes since it provides the opportunity to nip the issue in the bud.

If a Texas property owner has paid their contractor in full, they can force the contractor to make sure others are paid

So, as mentioned above, a monthly notice provides an owner the chance to pressure their GC into resolving payment disputes. The Texas Property Code doubles down on that principle. Under § 53-153, if a mechanics lien is filed against the owner's property by someone other than the original contractor (GC), then that contractor must defend the owner from the claim at the contractor's expense. What's more, if the owner ends up having to pay out a claimant as a result of a claim, then the owner can then go after their contractor to recover the funds.

Bottom line

Nobody likes dealing with a payment dispute, but at least monthly notices provide owners with the chance to resolve payment disputes before a mechanics lien becomes necessary. And, receiving such a notice certainly doesn't mean that the contractor is off the hook for payment - and it actually provides an owner with some ammunition for forcing their contractor to resolve issues on the project. Rather than negatively reacting to a monthly notice, it's generally a good idea to try and get to the bottom of the dispute and apply pressure on whoever has failed to make payment in order to resolve the issue.

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