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Obligate FAQ
All of this language is a bit dense, but essentially, anyone who has an agreement to improve property with you directly, or an agreement with another contractor who has such an agreement with you, can file a lien if left unpaid. This commonly includes contractors, subcontractors, and material suppliers.
For the most part, all contractors, subcontractors, laborers, materials suppliers, and equipment suppliers who provide labor or materials to a property in Texas are not required to have a written contract (a verbal agreement is sufficient) to qualify for the right to file a lien.
Oral Contracts With Contractors Are Legally Enforceable You can sue a contractor for breach of contract, even without a written contract. Actually, the contractor can sue you as well.
Remedial Bonds Under Section 53.171 of the Texas Property Code: Under Section 53.171(c) of the Texas Property Code, a mechanic's lien can be discharged with a bond even after the dispute has arisen and the lien has been filed. The bond must be substantially higher than the lien amounts.
In Utah, an action to enforce a mechanics lien (both pre-construction or construction) must be initiated within 180 days of the date on which the Notice of Lien was filed.
Residential projects Direct contractors must file their lien no later than the 15th day of the 3rd month after the month their contract was completed, terminated, or abandoned.
Yes, contractors and suppliers can file a mechanics lien on a homestead in Texas. However, they must meet additional requirements in order to retain their right to claim a lien. In order for anyone on the project to retain lien rights, the general contractor must provide the homeowner with a written contract.
Generally speaking, Texas requires parties to file a mechanics lien by the 15th day of the 4th month after the month in which the lien claimant last furnished labor or material to the project.
Does a mechanic's lien expire in Texas? Once a mechanic's lien is filed against a property, it will remain in place until it is “released”, which is a formal process.
One-Year Statute of Limitations – The original statute of limitations to foreclose on a mechanic's lien was one (1) year for residential projects and two (2) years for commercial projects. Now, it is one (1) year regardless of whether the project is commercial or residential.
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