There are instances when property owners fail to pay contractors, subcontractors, construction workers, and others in related trades after work has been completed on a property. Rather than stop work on a project, tear down what they have already done, or seek other kinds of remedies, members of the building trades can rely on Mechanics Law in Arlington. Also known as a mechanic’s lien or a materialmen’s lien, this powerful legal device gives workers the ability to file a lien against a property to compel an owner to make good on what they owe the workers.
When a lien is filed, information about the debt becomes public record, but there are many more actions that are activated.
What Happens When a Mechanic’s Lien Is Filed
A mechanic’s lien covers almost all labor, materials, supplies, and equipment involved in making improvements to real property. The lien can be filed before the project begins, and removed after all payments have been made. It also can be filed as a way to get paid for work already done. For people in the building trades, a mechanic’s lien is often the least expensive and most effective option way to get paid.
A lien carries the threat of foreclosure with it. In extreme cases, a creditor can file a lawsuit that can force the sale of the property with proceeds from the sale then being used to satisfy the debt. Most property owners would much rather pay the lien that have their property foreclosed.
Because liens are public documents, they can create a cloud on the title. In turn, this means a property owner could have trouble either refinancing or selling the property until the lien is satisfied. It is not unusual to have several liens filed against the same property, and in those cases, the law determines in which order each lien is paid.
It should also be noted for a builder or contractor that the work only needs to be substantially complete for a lien to be valid.
The Hixson Law Firm serves clients in Mansfield, Arlington, Grand Prairie and other nearby Texas communities.