How to File a Mechanic’s or Materialman’s Lien?
If you are a contractor, subcontractor, or supplier who has yet to get paid for your work or materials, you may be able to file a mechanic’s lien against the property owner to get paid. The process can be complex, so it is essential to understand all the steps involved before getting started. By following these steps, you can file your mechanic’s lien correctly and get paid for your work.
What Is a Mechanic’s Lien?
A mechanic’s lien is a legal claim that allows contractors, subcontractors, and suppliers to secure payment for work performed or materials supplied to a property. In Texas, a party who has not been paid for their work or materials can file a lien on the property itself. This lien gives the unpaid party a security interest in the property, which can eventually lead to a forced sale of the property if the party does not pay the debt.
In Texas, two types of liens fall under the umbrella of “mechanic’s liens”: materialman’s liens and labor and supply liens.
A materialman’s lien can get filed by anyone who has supplied materials to a project but hasn’t been paid. This includes direct suppliers (e.g., lumberyards) and indirect suppliers (e.g., manufacturers). Any contractor or subcontractor can file a labor and supply lien if they performed work on a project but didn’t get paid.
It’s important to note that you can only file a mechanics’ liens against improved property—that is, a property where you performed work or made improvements. This includes both commercial and residential properties.
Filing a mechanic’s or materialman’s lien in Texas is a relatively simple process, but it requires compliance with specific rules and deadlines.
When Can You File a Mechanic’s Lien in Texas?
In Texas, you can file a Mechanic’s Lien as soon as you’ve provided materials to a project (assuming no one paid you for them). You can file a labor and supply lien after you’ve completed at least $500 worth of work on a project (again, assuming you were not paid).
However, it’s generally advisable to wait until the job is complete before filing either type of lien. This is because any payments made after the filing date won’t be applied to the amount owed—meaning you could still end up owed money even if the property owner makes partial payments after the lien is filed.
The Mechanics’ Lien Process in Texas: A Step-by-Step Guide
Filing a mechanic’s lien in Texas is relatively straightforward—albeit slightly complex and time-consuming. The steps that you need to take depend upon whether the lien is on a residential property. Here are the steps you’ll need to take for non-residential property:
- Determine if you are eligible to file a mechanic’s or materialman’s lien. To file a mechanic’s or materialman’s lien in Texas, you must have supplied labor, services, or materials in the construction of improvements to real property. You must also be able to show that you were not paid for your work or materials.
- Give notice to the property owner and general contractor that you intend to file a lien. You must give this notice by the fifteenth day of the third month after each month that you completed work or supplied materials. This notice must include specific information about the claim, including the amount of money owed, a description of the work performed or materials supplied, and the name of the person who contracted with you.
- File your claim with the county clerk by the 15th day of the fourth month after the original contractor’s work is complete. You must file the claim in the county where the property is located and pay a filing fee. The claim must also include specific information about the debt, including the amount owed, a description of the work performed or materials supplied, and the names of all parties involved in the transaction.
- Serve notice on all interested parties by certified mail within 5 days after filing your claim with the county clerk. All interested parties include the property owner and any general contractor, lender, tenant, or lessee.
- File a lawsuit seeking to foreclose the lien. The lien is just an affidavit claiming a lien. In order to foreclose on it, you will need to file a lawsuit and obtain a judgment against the property owner.
If someone owes you money for work performed or materials supplied in connection with construction improvements to real property in Texas, filing a mechanic’s or materialman’s lien may be an effective way to secure payment. The process for filing a mechanic’s or materialman’s lien is relatively simple but does involve some specific steps and deadlines that must be complied with for the lien to be valid and enforceable.
Contact Our Houston Real Estate Lawyers Today
Our Houston real estate lawyers make filing a mechanic’s and materialman’s lien easy. We can also help remove these liens from a property once issues are resolved. At Roger G. Jain & Associates, P.C., Houston residents and businesses deserve to have someone on their side that they can trust to handle all real estate issues swiftly. Call us at (713) 981-0600 or fill out our confidential contact form to learn more about your legal options. Our Houston real estate lawyers are available to help you protect your property and your rights every step of the way.
Roger Jain is a dedicated trial lawyer who assists his clients in the following areas of practice: civil litigation, business law, criminal defense, juvenile law, estate planning and family Law.