Your week was going great until you received notice that you have missed a court date, and now a default judgment has been filed against you. Maybe you never received the initial notice, or maybe you just plain forgot what day it was because of your hectic schedule. Doh! It’s okay. There are steps that can be taken to protect your assets and ensure the judgment rendered doesn’t take the shirt off your back.
The mechanic’s and materialmen’s lien has enough rules in Texas for complicated to be an understatement. There are time constraints, backcharges, hidden penalties… Let’s see if we can sort out a little of this nonsense so you can get to the business of making money.
If you don’t know the ins and outs of a mechanic’s and materialmen’s lien you’ll burn your bottom line faster than you’d burn the tires on that souped-up hot rod that’s been sitting in your garage.
When you file a lien on a property, Texas Property Code 53.054 requires you to include “a description legally sufficient for identification, of the property sought to be charged with the lien.” But what does “legally sufficient for identification” really mean? Texas law has a history of leniency when it comes to validating property descriptions […]
If you’re in the construction business, you’ve more than likely come across a Mechanic’s Lien or Materialmen’s Lien. This can be a useful tool to help protect a builder or contractor’s interest in the project they are developing. If you get to a point in a project where a party hasn’t paid for labor or […]
As a business owner, you have most likely encountered customers/clients who have failed to pay for products, labor, and/or services that you provided for their benefit. You may have also experienced the difficulties involved in collecting those outstanding debts yourself. The insecurity caused by not knowing the collection measures you are legally allowed to utilize […]
Construction industry professionals may or may not be aware that there is currently a bill pending in committee in the Texas House of Representatives that would completely overhaul the mechanic’s and material man’s lien process in Texas. Those who are aware may be asking themselves and their colleagues whether they should give this bill their […]
Mechanic’s liens exist to protect the rights of construction professionals and to help ensure they are properly compensated for work or materials they have provided. While the purpose liens serve is beneficial, maneuvering through the process in Texas can be complicated and tricky.
A “Pay-when-Paid” clause is not covered under Chapter 56, as Chapter 56 “does not affect provisions that affect the timing of a payment…if the payment is to be made within a reasonable period.” It merely creates a future event as a convenient time for payment; but still requires the general contractor to pay the subcontractor. In other words, in most cases a “Pay-when-Paid” clause is enforceable.
Make us your first line of defense. Not your last resort.
