Texas Mechanics Lien Frequently Asked QuestionsTexas Lien Documents are Easy to File with LienItNow.com What is a Texas mechanics' lien Claim?In Texas, mechanics' liens are created by
constitutional right and
by statute. A
Constitutional Lien is
available only to
contractors in direct
contractual privity with
the owner for the
improvements to the
property. Statutory
mechanics' liens may be
asserted, similar to
other states, by general
contractors,
subcontractors,
materialmen, mechanics,
or artisans. A Texas
mechanics lien that
is filed with regard to
work performed on
privately owned property
attaches to and
encumbers the fee simple
ownership of the
property. Who can file a Texas mechanics' lien Claim?Contractors, as well as
subcontractors,
sub-subcontractors and
suppliers who have a
contract with a general
contractor or a
subcontractor can file a
Texas construction lien. Architects,
engineers and surveyors
are also entitled to
Texas statutory liens so long
as their design is
utilized in the
performance of the
construction work. Are pre-lien notices for a Texas mechanics' lien Claim required?Texas pre-lien notices, known as
Disclosure Statements,
are required in
residential
construction. The
original contractor
should furnish a
Disclosure Statement to
the owner before it
enters into a contract
for construction.
Essentially, the
contractor should attach
a list of subcontractors
and suppliers. A signed
periodic statement that
lists the bills or
expenses that the
original contractor
intends to pay or have
been paid under its
request for payment must
also be provided. If the Texas lien claimant is
not the original
contractor, notice of
unpaid amounts must be
given directly to the
owner and the original
contractor.
Specifically, any Texas lien
claimant must file its
Affidavit of Lien in
accordance with Texas
statute. Can you file a Texas mechanics' lien Claim without a pre-notice?
Yes, but claimants whose
contract is not with an
owner, such as
subcontractors or
suppliers, should
provide the project
owner periodic written
notices of the unpaid
value of the claim.
These notices should be
issued periodically and
not solely upon the
completion of work. If
the Texas pre-lien notices are not
provided, the mechanics lien can
be invalidated even if
the mechanics lien itself is filed
properly. When should a Texas mechanics' lien Claim be filed?A Texas Mechanics lien must be filed by
the 15th of the
fourth calendar month
after the day on which
the indebtedness accrued
or the third month for a
residential project.
The timing depends upon
when the indebtedness
accrued which can depend
on the tier of lien
claimant. In the case of an
original contractor has
a contract with an
owner, the owner's debt
accrues the last day of
the month in which (1)
the original contract is
completed, finally
settled or abandoned, or
(2) either the owner or
contractor receives from
the other a written
notice of contract
termination. How much does it cost to file a Texas mechanics' lien Claim?LienItNow.com prepares,
files and serves Texas
mechanics' liens for a
fee of $250.00. This
fee does not include
Texas pre-lien notices, which can
be provided for an
additional fee. Do I need a written contract to file a Texas Mechanics Lien?No, unless the
improvements are to
homestead property or
the mechanics lien claimant is an
architect, engineer or
surveyor, a written
contract is not needed.
The contract may be
either expressed in
writing or implied. How does filing a Texas mechanics' lien Claim help me get my money?On a private project,
the Texas mechanics' lien places an encumbrance on
the property that makes
it difficult to resell
or re-finance the
property without first
removing the mechanics lien. What is a Texas Stop Notice and why should it be filed
LienItNow.com prepares and serves
Texas Stop Notices for
a fee of $100.00.
A Stop Notice is a
notification that has
the ability to enhance
the effectiveness of a
mechanic's lien. A Stop
Notice, or a notice to
withhold funds, is sent
to the company that is
financing or funding the
construction funds for a
project. Once that
company receives the
Stop Notice, that
company has notice that
it should withhold
sufficient money to
satisfy the stop notice
claim. The purpose of
the Stop Notice is to
provide the lender,
financiers or funders of
the construction project
notice that there is
money owed to a
contractor,
subcontractor or
supplier so that an
inquiry can be made as
to why that money is not
being paid. What is a Texas Amendment to a mechanics' lien Claim?LienItNow.com prepares, files and
serves Texas
Amendments to mechanics' lien Claims for a fee of $225.00. Amendments to a
mechanics' lien claim
are often needed when
something about the
lien claim changes. Common
changes to a lien claim
are increases or
reductions in the amount
due to the lienor, or a
change to the last date
of work. When should a Texas Discharge of mechanics' lien claim be filed?LienItNow.com prepares, files and
serves Texas
Discharges of mechanics' lien Claims for a fee of
$75.00. Once the lienor
has been paid the amount
contained in its lien
claim, or has come to an
agreement that requires
the lien claim to be
removed from the
property records, a
Discharge of mechanics' lien Claim should be
filed. How much does it cost to file an Extension of a Texas mechanics' lien Claim?LienItNow.com prepares, files and
serves extensions of
Texas mechanics' lien Claims
for a fee of $75.00.
All lien claims expire
after a certain period
of time, and filing an
extension of the
mechanics' lien claim
prolongs the expiration
date. Texas law,
however, does not permit
an extension of
mechanics' lien claims. Can I file a Bond Claim on a Texas Project?LienItNow.com prepares, files and
serves Texas Bond Claims for a fee of $250.00. Bond claims
can only be filed on a
project where the owner,
contractor or
subcontractor has
obtained a payment bond
to ensure that every
contractor receives
payment for the work
performed on the
Project. The payment
bonds issued by sureties
for construction
projects have specific
timing requirements, but
most require claimants
to submit claims against
the bond within sixty to
ninety days from the
claimants' last date of
work. Bond claims are as or
more effective than a
lien claim because the
payment bond acts as a
guarantee that payment
will be made for work
properly completed. Do I need to file a Pre-Notice to make a claim against a Texas payment bond?LienItNow.com prepares, files and
serves Texas
Pre-Notices for bond
claims for a fee of
$50.00. Depending on
the terms of the payment
bond, pre-notices may or
may not be required.
LienItNow.com recommends that, prior
to or immediately after
starting work or
delivering materials to
a project,
subcontractors and
suppliers, file a
pre-notice that it is a
potential beneficiary of
the construction
project's bond. |
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