A mechanic’s lien is a legal claim against a property for unpaid construction work or materials. For contractors, subcontractors or suppliers who haven’t been paid for their work, it can be a powerful tool to ensure payment.
However, the clock is ticking; a mechanic’s lien doesn’t last forever in Texas. Generally, it remains valid for one year. The law also allows you to agree with the property owner to extend the time by another year. After that, the lien automatically becomes invalid.
If you had not taken legal action within that time, you lose the right to enforce the lien. This means the property owner can move forward with their plans, such as removing the lien or selling the property.
Enforcing a mechanic’s lien
If you haven’t been paid and want to keep your lien in place beyond its expiration date, you must file a lawsuit to foreclose on the lien. The lien will remain in effect until the court reaches a judgment. This will extend the lien’s duration, but it could also result in legal proceedings that may delay the resolution of the debt.
Removing a lien after payment
Releasing the lien promptly after payment can help maintain good business relationships. It shows you’re fair, professional and committed to resolving issues quickly. It can improve your reputation and maintain clients’ trust, which is crucial for securing future projects.
Understanding your options to speed up the resolution of your mechanic’s lien claim is essential to effectively managing delays and ensuring you are paid for work done. Whether it’s negotiating a settlement, pursuing partial payments or taking legal action, getting an informed assessment of your situation can guide you on the best approach to maximize the chances of a favorable outcome.
