Legal Question in Construction Law in Texas
non-payment of materials equals lein on property
We purchased our new home 11-14-05, now the tile and granite company says that they have not been paid by builder and are going to put a lein on our new home. What can we do about this? Builder has said that they will take care of bill, but we know that they have also not paid numerous other sub contractors on our home and the others in sub-division. What can we do to protect our home? The builder is also building a new home, is in litigation with another home owner in community etc. Can we take any offensive action to ensure that this does not happen again with another contractor? We may also have to go into arbitration with builder as they are not correcting mistakes made during build in a timely manner, will that affect the lein and if so how? Will it help to contact the better business bureau and our bank?
Thank you for any help you can give me. We are extremely frustrated with the builders and want this to be finished and put behind us as soon as possible.
2 Answers from Attorneys
Re: non-payment of materials equals lein on property
If the subcontractor is within the statutory time period, and if the builder has been paid in full, the only way to stop the lien is to pay the vendor, then sue the builder.
Did you receive an affidavit of no liens due before paying the builder? Did you withhold 10% of the contract price for 30 days after completion of the work just for unpaid vendors? How long ago was the work completed?
By all means report this builder to the Better Business Bureau. Let others know what a miserable job he has done so they may avoid being in a position similar to yours.
Re: non-payment of materials equals lein on property
Run -- do not walk -- to the nearest property lawyer that you can find. It is likely that your new home may have already qualified as your homestead. Different rules apply for homesteads in regard to mechanic's liens. If the property is your homestead and you and your spouse have not signed any document which gives the subcontractor's a lien, there is a good possibility that they cannot acquire a lien on your hometead.
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