Mechanic’s Liens

Mechanic’s liens are among the most powerful tools in Texas construction law. They directly secure payment for contractors, subcontractors, and suppliers who have performed work or provided materials but have not yet been paid. But filing, perfecting, and enforcing mechanic’s liens can be complicated, particularly in Texas, where lien laws are known for being among the strictest and most technical in the country.

We help contractors, subcontractors, suppliers, and property owners navigate these complicated lien laws effectively. For contractors, properly filing a lien ensures your claim is protected and payment is secured. For property owners, responding correctly to liens filed against your property is equally critical. Our approach is simple: understand the law, know the procedures, and execute them right every time.

Texas law has strict requirements for mechanic’s liens, beginning with detailed notice procedures. For subcontractors and suppliers who were not directly hired by the property owner, Texas law requires sending timely notices of unpaid claims, typically referred to as pre-lien notice. These notices must be sent within specific time frames, depending on whether the project is residential or commercial, and failure to meet these deadlines can eliminate lien rights entirely. Our firm guides clients through these notice requirements, making sure every step is accurately timed and properly documented.

Once notice requirements are satisfied, the next step is filing the lien affidavit itself. A properly prepared lien affidavit must identify the claimant, describe the property clearly, specify the unpaid work performed, and state the exact amount owed. We regularly prepare and file lien affidavits, ensuring they meet all statutory standards and timelines.

Homestead properties present additional complexities. Texas law imposes strict conditions for placing liens on residential homesteads, including requirements that both spouses sign written contracts prior to the start of any work and that these contracts be properly recorded. Many contractors overlook these details, resulting in invalid liens and costly disputes. We help homeowners remove improperly filed liens swiftly, while guiding contractors to follow the exact rules required to protect their rights.

When liens are disputed or improperly filed, Texas law provides several avenues for removal. This can involve an informal demand for lien release, filing a summary motion in court, posting a bond to indemnify against the lien, or initiating full-scale litigation to remove the invalid lien. Each method has strategic benefits and costs. Our firm evaluates each case individually, advises clients on the most efficient route, and takes immediate action to clear property titles and prevent liens from interfering with financing, sales, or project closeout.

For liens that are valid and properly perfected, enforcing them through foreclosure proceedings requires prompt action. Texas law provides a strict one-year period to initiate foreclosure after filing a lien affidavit. Missing this window invalidates even properly filed liens. Our attorneys move decisively to protect client interests, initiating foreclosure actions when needed and negotiating settlements when practical.

Mechanic’s liens serve an essential function in securing payment in the construction industry, but only when handled correctly. Whether you’re a contractor needing to protect your financial interests or a property owner confronting lien claims, our extensive experience ensures you have the right strategy from the start. Contact us immediately if you’re dealing with mechanic’s lien issues, so we can clarify your rights and obligations, protect your financial interests, and help resolve the matter efficiently.

Case Law Highlights – Mechanic’s Liens

Texas courts take mechanic’s lien law seriously, and they expect contractors, subcontractors, and property owners to do the same. The legal standards for lien validity are among the strictest in the country, and two cases in particular demonstrate how even small missteps can carry serious consequences.

First Nat’l Bank in Graham v. Sledge, 653 S.W.2d 283 (Tex. 1983)

In this Texas Supreme Court case, the court addressed the validity of a mechanic’s lien filed by subcontractors for unpaid work on property financed by First National Bank. The court found that the subcontractors failed to perfect their lien under Article 5463 due to non-compliance with statutory notice requirements. However, they did perfect their liens under Article 5469, which requires the owner to retain ten percent of the contract price, regardless of notice.

The subcontractors’ liens were given preference over the bank’s lien to the extent of this retained amount. This case underscores the importance of adhering to statutory requirements for lien perfection and highlights the need for precision in filing and perfecting lien rights.

Cadle Co. &  Cadleway Props., Inc. v. Ortiz,  227  S.W. 3d 831

A lien holder foreclosed on a married couple’s homestead even though only the wife had signed the home‑improvement documents. The court of appeals invalidated the mechanic’s lien and declared the foreclosure wrongful because the Texas Constitution requires both spouses to consent in writing to any construction lien on a homestead (Art. XVI, § 50(a)(5)(A)). Cadle argued the couple had waived their rights by misrepresenting the wife’s marital status, but the court found no affirmative misrepresentation by either spouse and held the husband’s homestead interest remained intact.

The panel also held that a wrongful‑foreclosure challenge to an invalid lien may be brought under the Texas Uniform Declaratory Judgments Act, not as a trespass‑to‑try‑title action, which meant the homeowners could recover attorney’s fees. A dissent would have prevented the homeowners from asserting homestead because the wife had kept her husband off the papers.

On residential homesteads every constitutional formality, both‑spouse signatures and proper recording, must be satisfied, and a DJA pleading can open the door to attorney‑fee recovery when invalid liens lead to foreclosure.