Rolls of money

Breaking Down the Texas Lien Process

In the physical world, a lien is a piece of paper. In the legal world, a lien is a way to take a debt from being unsecured to secured. In a Contractor’s world, a lien is the BOMB!

If you don’t take the measures to protect yourself, it’ll be like taking food from your family’s mouth. Your family deserves to be protected. Your hard-earned money deserves to be protected. Do not let another second go by that you aren’t protecting yourself and your business. If you are confused about the lien process, contact the friendly attorneys at The Cromeens Law Firm.

Why are liens so important for Contractors?

One of the most important things you should understand is that you have lien rights.

A lien is your golden ticket to securing the money that is rightfully yours!

Liens are important because the construction industry runs on credit and the Contractor is the one extending the credit. This means the Contractor put forth labor and material and then waits to get paid. By putting out labor and material, the Contractor is extending credit to the Owner and there is no guarantee the Contractor will get paid. Next, enter the Lien. If you follow all the lien procedures correctly, it will give you the closest thing to a guarantee of payment in this business.

Guaranteed payment can change your business

What jobs could you take and how much could you grow your business if you were guaranteed payment? The potential is unlimited. Sounds too good to be true, right? The good thing is, it is true, but there are a lot of steps you must follow correctly to have a valid lien. If you get ANY of those steps wrong, not only do you lose your guarantee of payment, but you could end up paying someone else’s attorney fees and/or damages. The effect of a lien is not to be taken lightly and neither are the steps required to have a valid lien.

Sign up for our Webinar!

Our Contractor & Supplier Liens webinar is on Wednesday, March 3 at 11 am. Learn how to protect yourself on the front end, and get all your mechanic’s lien questions answered!

Who can have a lien?

Any person and/or company that supplies labor and/or materials for the construction or repair of any house, building, or anything being built on property. This includes all tradespeople, architects, engineers, surveyors, landscapers, and demolition crews.

How does a lien work?

A lien is filed in the County’s Real Property records, where the property is located, and once it is filed with the correct property information, including a legal description, it attaches to the property it is filed against. Once a lien attaches to a property it cannot be transferred, sold, or mortgaged unless the lien is taken care of. This gives whoever has a valid lien filed against a property great leverage. The Owner of the property cannot sell or refinance unless the lien is taken care of.

Is there still a way to collect if you don’t have a lien?

Yes, there is a different way to collect your money. You can have a breach of contract claim against whoever hired you. Please note that this claim is not nearly as good as the type of guarantee that you get from a lien. With a breach of contract claim, you must send a letter and file a lawsuit. But be aware that this process is messy and not nearly as effective as having a valid lien that can stop the sale of a property cold in its tracks.

Lien Subscription

There are no surprises when it comes to our services at The Cromeens Law Firm. We understand the importance of transparent pricing. No more unexpected legal fees. No more surprises. Our monthly subscription plan fits your budget and saves you money. Our Silver Plan is $1,000 per month—and you’ll have our entire Lien Department ready to serve you.

Lien Subscription graphic

Flat Rate Lien Package

If you need to file just one lien, our flat-rate offering is a great, budget-friendly option. And remember, we offer additional options to best accommodate you and your unique situation.

All-Inclusive Single Lien Package Flat Rate: $1,070

  • This $1,070 package is for a single lien and includes extensive research, collection phone calls to all parties, intent letters sent via certified mail, lien filing with the county clerks’ offices, and reviewing the releases for the project.

Contact your friendly Cromeens Law Firm legal department to discuss all your options.

Conclusion

This article is the first in the series where we take a deep dive into the lien process and what it takes to file a valid lien. Whatever your lien needs are, The Cromeens Law Firm is your one-stop shop. Contact us today so we can customize a plan that will work the best with your contractor business at 713.715.7334. Sign up for our Contractor & Supplier Lien Webinar on Wednesday, March 3 at 11 am. The Cromeens Law Firm’s Lien Specialist, Jessica Mora, will guide you through the time-sensitive process of filing a mechanic’s lien. Learn how you can protect yourself on the front end. We will answer all your mechanic’s lien questions!

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