How Do I Collect on a Mechanics Lien in Texas?
A mechanic's lien allows for individuals who provide either labor, materials, machinery, fixtures or tools used to construct or repair property of other individuals to make legal claims, should the receiving entity fail to make payment for materials or services. Encumbrances are filed against the owner's title to privately held real property. Always consult an attorney for the best collection strategy.
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Legal Compliance
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Texas's mechanics lien laws are codified in Chapter 53 of the Texas Property Code. Filing and notices must be given within specific time limits to properly perfect a valid lien. Failure to comply with the statutory requirements may make it difficult, if not impossible, to collect on a mechanic's lien, regardless of how much is owed.
Auto Claims
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The Texas law regarding mechanic's liens, does not apply to automotive mechanics. Auto mechanics must file a possessory lien to a vehicle, to retain the vehicle for a valid legal claim as the vehicle must be in possession to collect. Lenders holding vehicle note liens are cautioned against fraudulent claims and notes that vehicles may be sold in as little as 30 days to satisfy a claim.
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Filing Claims
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The law allows for claims filed against buildings and improvements, not land. When the real estate is sold or refinanced, county filed liens are found during the title search, or can be delivered to the title company and paid out of closing proceeds. The law states that the person enforcing the lien may have the house or other improvements sold separately through a legal foreclosure. First, submit a claim to the owner for payment. If that fails, submit a claim to the mortgage lender who may find it in their best interest to pay the claim.
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References
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