Construction Liens & Notices in Texas
When in Texas, if you’re a contractor, you may have to deal with stubborn clients or customers who don’t want to pay up. When this happens, you sometimes have to grab the bull by the horns and take matters into your own hands.
But you have to be careful, because some contractors have to take special care of how and when they file for a mechanic’s lien in order to ensure that they get paid. If you’re one of these contractors, or even a material handler/supplier, you may be entitled the right to file a lien yourself – as long as you do it right. Let’s talk about that, shall we?
Anyone Contracted Can File
You can’t file if you’re not on the contract, but if you’re on the project at all in regards to the full legal project contract, you have the right to file a lien if necessary.
Understanding construction liens and notices is crucial for anyone involved in the Texas construction industry. If this knowledge has prompted you to start your own construction business in the Lone Star State, you may want to consider establishing a formal business structure. For information on how to get an llc in texas, this accessible guide can set you on the right path.
You have to file a lien before the project, but you have to also know that your lien claim can expire before or after the project is done. Texas is a lot picker than other states – you have to make sure your affidavit is filed on the 15th of the fourth month after completing the work for a commercial job, or on the third month if it’s a residential job. Most other states aren’t this particular with dates. You can see this when you look into how to file a mechanic’s lien.
40 days after you complete the affidavit and notice, you can file your retention. You have to do a lot of this with the county recorder, and it has to be in the county where your lien is going to be filed. For the best chances, it should also be in the county that the project is in – just so you’ll be safer. Once all that waiting is done, you can go ahead and file your claim.
Is Payment Guaranteed?
One thing to take special note of is that even if you file and record a mechanic’s lien, you aren’t guaranteed payment once this is done. This process is very precise, and if there is any – and we stress ANY – violation of any or all of the deadlines, then you’ll forfeit your right to file and enforce a mechanic’s lien. Fortunately, there are some companies out there who can give you a bit of a push in the right direction – and even handle your claims for you, as well as ensure that you’re going to get the best one that you need (depending on the type of job that you’re doing).
BICA has been helping contractors and those who are self-employed for years with their claim and mechanic’s lien services. They can help with preliminary notices, as well as credit services for contractors nationwide – and make sure that you follow everything to a T when it comes to the timing (which is the most important factor to filing a lien no matter what state you’re in). If you need to, you can always get ahold of them by going to their website, and get extensive information on filing a lien if necessary, in your area if you should choose to do it yourself!