Purpose of a Mechanic’s Lien
A mechanic’s lien exists as a way for contractors to collect money for services, labor, and materials on both personal and real property. Filing a mechanic’s lien is necessary to show property owners you mean business about getting paid for your services, and rightfully so. A mechanic’s lien isn’t just for contractors, other skilled laborers or suppliers can file. Unfortunately, this type of circumstance happen. Imagine you spend months building a new attachment to a home. All of the necessary work is done, but the owner refuses to pay the remaining balance. The obvious thing to do is sue for breach of contract, but you could file a mechanic’s lien on their property. In doing so, the information about the debt becomes public. This can affect their credit, ability to sell or refinance the property; it can even threat foreclosure. A contractor can file a lien before the project begins and remove it once the full payment is made, this is the most effective way to guarantee payment. It doesn’t matter how big or small the job is or if you provided materials, the property owner is obligated to pay in full according to the contract. When filing a lien you don’t get paid right away, but it will make it difficult for the owner to do anything with the property. In the state of Texas, a mechanics lien must be filed by a certain date depending on if you are a prime contractor, subcontractor, or supplier. So, it may be wise to send a monthly notice for each month that you performed work on the property. It takes time to process the paperwork so don’t cut it too close to your monthly deadline. Also, remember that there are special notices for specially made materials (custom made cabinets can’t be used in another home). Keep in mind that leaving a project unfinished won’t force a property owner to pay, but may actually create more legal problems.
Wylie Attorneys Here to Help
You deserve to get paid for your hard work. Laws are put in place to protect you in case property owners refuse to pay you. But if you are new to this or have questions, you will need the expertise of a Texas attorney who knows the law inside an out. The advice from a construction attorney at Edmonson Law, PLLC can keep your construction project moving. Contact Edmondson Law in Wylie by calling 972-442-8326 or visiting www.wylietxlaw.com. We are here to help you or answer any questions you may have.
Information, Not Legal Advice. We provide the information on this website as a public service. The legal landscape is constantly changing and being modified by state law and case law. As a result, we cannot promise that this information is always up-to-date and reflective of the most current jurisprudence.
We do not intend this information to be legal advice. By providing this information, we are not acting as your lawyer. If you need legal advice, you should contact a lawyer through our number (972) 442-8326 or contact another attorney of your choosing.
