Construction projects are very expensive. They involve risk for both the homeowner and the construction professionals performing the work. Homeowners can never be completely certain of the quality of labor that they may receive, while those performing the work have to worry about clients defaulting on their promise to pay.
Both parties have to act to protect themselves throughout the construction project. Typically, homeowners protect themselves by only providing partial payment initially. That way, they can leverage the remaining funds in cases where the project sits uncompleted or the work performed doesn’t meet their standards.
Construction businesses and professionals protect themselves with contracts making the amount owed, the expectations for the work, the materials used and the timeline for the project clear. In cases where a project ends in a dispute rather than both parties feeling equally satisfied, the matter may result in legal action seeking a mechanic’s lien.
Who can potentially request a mechanic’s lien against real property in Texas?
The law empowers many professionals
Under Texas state statutes, property owners have to fulfill their contractual obligations to pay service providers and those who deliver materials for construction work. The failure to do so might lead to litigation seeking a mechanic’s lien. The law authorizes construction companies, materialmen, contractors and individual professionals to take legal action.
In fact, even parties not directly hired by the property owner can take legal action seeking to use the property as collateral for payment. In scenarios where large construction companies hire outside professionals to assist with the project, the homeowner may have only directly contracted with the company. However, any of the professionals working on the home could seek to use the property as collateral if the company that hired them does not pay them in full.
The lien prevents the homeowner from transferring their ownership interest to others until they resolve the outstanding financial obligations. The lien holder can also seek to enforce the lien. That process is similar to foreclosure and might force the owner to sell or refinance the property to pay what they owe. The failure to do so might lead to the loss of the property.
Both homeowners and construction professionals may need information about mechanic’s liens to resolve a dispute after the completion of a construction project. Reviewing the contracts and the outcome of the project with a skilled legal team is a good starting point for those concerned about or seeking mechanic’s liens.
