How To FileA Mechanics Liens Against

Commercial Property In Texas

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A mechanics lien can be filed by anyone who has provided labor, services or materials for the improvement of a commercial construction project and is not getting payment for what has been delivered.

Filing a mechanics lien provides the claimant a security interest in the improved property but it involves several steps and requirements for its validity.

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Step 1:

1.Prelien notice letterA prelien letter is required to be sent by any contractor or service provider who did not contract directly with the project owner. The purpose of this notice is to notify the owner that a provider is not getting paid in agreement with the contract. The project owner can now hold future payments to the general contractor until the subcontractor gets paid or pay the subcontractor directly. Along with the full information of the contract and the project, the prelien letter should detail the amount owed for each individual month and the intention to file a lien in case payment is not received. A copy of the prelien notice should also be mailed to the general contractor.If the contractor has been hired directly by the property owner or its agent, a prelien notice is not required, and a mechanics lien can be filed directly with the county.The deadline to send the notice for subcontractors is the 15th day of the 3rd month after the month the work was performed or delivered. And for sub-subcontractors is the 15th day of the 2nd month after the month the work was performed or delivered.

Step 2:2.Preparing & Filing Lien AffidavitWhen the claimant is a prime contractor, a constitutional lien affidavit should be filed it with the County Official Property Records Office where the Property is located no later than the 15th day of the fourth month from: (1) the last month in which the contract was completed, finally settled, or abandoned; or (2) the last day of the month in which the contract was terminated. Exception for Constitutional Mechanics LienPrime contractors have the right to file a constitutional mechanics lien against the property the work affected the structure. The type of work typically not covered by a constitutional lien includes: (1) landscaping that does not affect the structure; (2) supplying or installing plant materials; (3) irrigation; (4) underground wells; (5) demolition; and/or (6) fencing.

When the claimant is a subcontractor, a mechanics lien should be filed for every month of work that is going unpaid. More than one mechanics lien can be filed by the same claimant for the same project. The deadline to file a mechanics lien for subcontractors is the 15th day of the 4th month after the month the work was performed or delivered.

When the claimant is a sub-subcontractor (contracted with another subcontractor) the requirements do not change but the deadline to file a mechanics lien moves to the 15th day of the 3rd month after the month the work was performed or delivered.

Things to NoteThe deadline to file a lien is not extended if the deadline date falls on a Saturday, Sunday, or legal holiday. Therefore, it should be filed on the preceding business day to be timely.

Step 3 & 4:3.Serving notice of lien filingA copy of the mechanics lien should be sent to the property owner and the prime contractor (if it is the case) with no later than the 5th day after filing the lien.

4.Serving a pre-foreclosure payment demandIf payment is not received after every required measure has been taken, the next step is to foreclose the lien with a lawsuit. However, before moving ahead, is a good idea to send the property owner a pre-foreclosure payment demand letter notifying your intention to retain counsel to file a lawsuit to foreclose on the mechanics lien.

Step 5:

5.Filing a lawsuit to foreclosureFor commercial projects, if a lawsuit is not filed to foreclosure on the mechanics lien within 2 years from the date of filing the lien, the mechanics lien will become invalid and unenforceable. It is important to retain every document related to the contract and the lien in case a lawsuit gets filed so the attorney representing the claimant can get all the necessary documentation.

To prepare and file a mechanics lien, visit: https://www.texaseasylien.com/

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