To have a valid lien in Texas, before you can even think about filing the lien with the county clerk, you need to make sure you have sent proper notice required to have a valid lien. It is so important to fully understand what you are responsible for when filing a lien and what is required to ensure you have a valid lien. The process is meticulous and there are many things you need to understand to ensure you have leverage. Our experienced team is here to discuss all your options and ensure that your assets are covered, and you are properly protected. In this article, we’ll help you answer the question “Why are so many notices required to have a valid lien?”
Notices required to have a valid lien
Let’s look at it this way—pretend for a second that you make the world’s best burgers. I mean, your burgers are so good that strangers are knocking on your door asking for your double melt patty with sharp cheddar cheese, and all the fixins on a homemade egg bun. So, you start thinking, “man I really do not want all these strangers coming to my house, I need to open a storefront—a burger shack.” The next steps are to buy a piece of land and have an architect draw up plans for your perfect burger shack. From there, you hire a General Contractor to build your burger shack. The General Contractor starts building the perfect brick and mortar storefront and, as he does, you pay him. When he is done with the construction process, you pay him in full and start selling the world’s best burgers at the perfect burger shack.
The next day you start getting letters in the mail from attorneys stating that if you do not pay their clients for the work they completed, liens will be filed against your burger shack. What are these people talking about? You have already paid in full for your burger shack; how could you possibly owe these other people money? You have no idea who they even are. You thought you only signed a contract with your General Contractor and not these other people. If you would have known these people were not paid, you would have made sure they were paid before you paid the General Contractor. That is the reason so much notice is required, to give the parties at the top of the construction food chain a chance to make sure everyone is paid on a project before a lien is filed.
If you are wondering which notices need to be sent and when to have a valid lien (based on where you are in the construction food chain and what type of project you are working on), read our blog from earlier this month. If you work directly for the Owner of the property (you are lucky) and have a constitutional lien, no notice is required before you file your lien.
Lien Notices for Homestead or Residential Projects
If you are in place 2 or below and are working on a homestead or residential project, refer to the following timeline. The first notice you are required to send is the 15th day of the second month you remain unpaid.
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Lien Notices for Commercial Projects
If you are in place 2 and are working on a commercial project, refer to the following timeline. The First notice you must send is the 15th day of the 3rd month you remain unpaid.
If you are in place 3 or below and are working on a commercial project, refer to the following timeline. The first notice you need to send is the 15th day of the 2nd month you remain unpaid.
You may still have questions, and we have answers!
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Our concentration in the construction industry and our devotion to our clients set us apart in the legal world. Why risk losing what is rightfully yours? Your family depends on you to support them, and you can depend on The Cromeens Law Firm to support you! Our team is fully equipped to answer any and all questions you have and guide you through the time-sensitive process of filing your Mechanic’s and Materialman’s Liens. Call us today at 713-715-7334 to schedule a free consultation—we will be happy to assist you.