The Lone Star state is no different than most other states when it comes to contractors getting the insurance they need in order to get paid. However, if you don’t do it right, you can still lose your right to a lien and you need to avoid this at all costs. Of course, there are small legalities in place in every state that are a little bit different, and we’ll talk about how to file a mechanic’s lien in Texas, as well as give you a great place you can go to have it done for you.
What the Heck is a Lien?
Well, it isn’t a loan, that’s for sure. A mechanic’s lien is a claim that a contractor, and even subcontractor can file in order to get paid when it comes to private construction jobs. If it’s a public work project, Texas doesn’t allow mechanic’s lien, so you have to file a bond claim. You can find out how to do that if you hire the right company that can give you proper consultation too. But what we’re covering here is a mechanic’s lien.
Can Anyone File a Lien?
The first thing you have to realize if you’re a part of a project is how you can file a lien, and if you’re eligible. If you provide labor or materials as a licensed contractor, create custom items for use in the project, offer any landscaping, demolition, or even interior, exterior, or CAD design services (like an architect providing blueprints, a surveyor, etc.), then you have a right to file a lien as long as you have an agreement with the property owner in place – with a few additional rules and regulations since you’re not the general contractor in this project.
The Timing is Crucial
You never want to file a lien so long before a project that the lien claim can expire before you’re finished with working (or after). Because of this, you want to ensure that you have your date correct when you file a lien. In Texas, by their property code §53.052, you have to file your affidavit on the 15th of the fourth month after completing the work, or if it’s residential construction, the third month (also on the 15th).
On the 40th day after completion, as long as you send notice of an affidavit, send the property owner legal notice of an abandoned or termination of the said project, or even on the 30th day after the owner sends you notice of contractual retainage (or a written demand), you can file your retention to file a claim. The best way to do this is to contact the county recorder where your lien is going to be filed. After this, you more than likely will be able to successfully file your lien claim.
If you have any issues, or need any advice when it comes to getting the right lien for you, and for the timing, you can actually hire BICA National Construction Notices to get all of the paperwork in place for you, as well as help you qualify for a lien. When you’re getting ready to start a project, you can contact them and have everything ready so you can ensure payment at the end of your contract no matter what.