Congratulations! You have filed a mechanics lien (also commonly called a construction lien) to collect the money you are owed for a commercial construction project. Now what? In this article, we will outline what to expect AFTER you file a mechanics lien in Texas.
Once your mechanics lien is perfected and filed with the county records office, you should be on your way to receiving payment for the debt you are owed. However, you are not finished with fulfilling the lien procedure requirements set forth by Texas Construction Law. So, assuming your mechanics lien resulted in payment, what are your next steps?
Mechanics Lien Release Form
Once a mechanics lien is filed, it is up to the property owner to pay the debt. Once the debt is paid, they will likely request a release of lien. At that point, the contractor, subcontractor, or materials supplier that filed the mechanics or construction lien is required to “release the lien” when the following circumstances are met:
- The payment dispute has been resolved and settled.
- Payment has been issued and received for the claim (note: a partial payment may in some circumstances result in a partial release)
- A lien release is requested by the owner, contractor, or party that made payment
To release a lien, yet another Texas mandated form is required, which is the mechanics lien release form (also called a contractor or sub-contractor lien release form). When a contractor or subcontractor files a lien release form in Texas, the county records office will officially release the lien and the accompanying debt.
When do you file a contractor or mechanics lien release form?
After receiving a written request for a lien release form, the contractor or subcontractor has 10 days to complete the paperwork. In other words, time does not start until the request to release a lien has been placed in writing. At this point, it is up to the contractor or subcontractor to obtain the lien release form, fill it out, and have it notarized.
Who files the mechanic or contractors lien release form?
The mechanics lien release form is ready to file with the county records office where the original lien affidavit was filed once it is notarized. However, the mechanics or contractors lien release form can be filed by the contractor, the property owner, or party that made payment. Once recorded, the county records office will release the lien.
Any tips for keeping all of this straight?
For years, those seeking payment on commercial construction projects often had to depend on hiring an attorney to file lien related paperwork, which was both time-consuming and expensive. Fortunately, services like www.texaseasylien.com now provide an easy and affordable online solution for preparing and filing lien and bond paperwork – including an extensive FAQ section to answer your lien filing questions.