Legal Question in Real Estate Law in Texas

What homebuyer should do when builder and original contract fail to pay the subs
I bought a brand new home in Dallas TX. w/ escrow closed in Aug 08. No realtor involved, just direct purchase from a real property owner (Tortoise) who hired an original contractor (Iron Castle) to build 10 single homes on their lot. Now I got notice that a company who did all sewage, asphalts, road widening etc. for Tortoise & Iron Castle wanted to sue those 2 and all homeowners for $24K owed by Tortoise & Iron Castle. Work was done in Nov 08 and claim was filed in Jan 09 to Tortoise & Iron Castle. I, a homebuyer, is unaware of any contract signed or demand of pmt between this company and Tortoise & Iron Castle. Now mechanics lien and materialman's lien have been placed on my home. There was no builder's affidavit as part of closing documents to state that everyone has been paid. All this happened after we closed escrow so will title ins cover this? What should I do at this point? How should I respond to the court's notice? Please advice.

Asked on 5/27/09, 2:15 am

Cheryl Rivera Smith The Smith Law Firm

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Re: What homebuyer should do when builder and original contract fail to pay the subs

Get out your title policy and make a claim according to the instructions on the jacket. They should take care of you and your defense.

Answered on 5/27/09, 8:25 am

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