Legal Question in Credit and Debt Law in Texas
If a lein can be filed on a construction project or not?
Can an equipment rental company file a lien on a construction site, if that site was under construction by a different company other than the one that has a rental contract with the equipment company? Even though the equipment was used to perform the work on the construction site by a company that had authorization from the company whom had the rental agreement.
1 Answer from Attorneys
Re: If a lein can be filed on a construction project or not?
Yes, but you'll have to prove the linkage placing the equipment at the non-residential construction site. Because the rental company is, at best, a third tier supplier, you have a very short time in which to give notice of non-payment to all parties up the line, including the owner of the real estate. In Texas, that notice would have to be given by certified mail not later than the 15th day of the 2nd month after the equipment was used on site; e.g. used on site in January, notice not later than March 15.
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