A mechanic’s lien is a way for professionals and suppliers to ensure payment after assisting with a project. Liens may follow new construction projects or projects to renovate or expand existing improvements.
If professionals and businesses are not paid after thew ork is performed at the property, then they may protect their interest by following a process to place a lien to secure the unpaid balance due on their invoices from the project.
Who theoretically has lien rights under current Texas state statutes?
The law offers broad legal protection
The law in Texas allows any party that provides goods or materials for a construction project to file a lien for unpaid invoices. The company that delivered the hardwood flooring for a remodeling project has the same rights as the contractor who installed the floor.
Businesses and professionals who have direct contracts with property owners are not the only ones with protection. Subcontractors and material providers who have arrangements with other businesses performing projects may also pursue construction liens if the company that hired them does not pay in full for the goods or services provided.
The lien is placed on the property where they did the work and becomes the collateral for the unpaid balance due. If the lienholder doesn’t receive timely payment, they may go to court to enforce the lien, which may lead to foreclosure of the property.
Property owners receiving notice of potential liens and professionals who have not received payments in full for contributions to a recent construction project may require assistants with lien laws to protect their rights. Working with a legal professional can make it easier to protect your interest with a lien or respond to a mechanic’s lien request effectively.
