November Mechanic’s Lien Reminder

Last month, we talked about the differences between 1st Tier and 2nd Tier Claimants and reiterated that to file your mechanic’s lien and notice letters timely, first you really need to know whether or not you are a 1st Tier or 2nd Tier Claimant.  Another important difference to understand is whether you are working on a residential or commercial project.

Definition-Residential

A single family house, duplex, triplex, or quadruplex or a unit in a multi-unit structure used for residential purposes that is owned by one or more adult persons and is used or intended to be used  as a dwelling by one or more of the owners.

As an example, work on a residential house or multiunit structure is not necessarily a “Residential Project” when it comes to mechanic’s lien laws.  Specifically, if it is a spec or tract house and the builder or general contractor who owns the house does not intend to occupy it as a primary dwelling then, technically, this type of project falls under the mechanic’s lien rules for commercial projects.

Another easy hint is, does a corporation own the house or is it for an investment?  If so, it can never be “residential” for the purposes of the mechanic’s lien laws.

Once you know what type of Claimant you are and whether or not you are working on a residential or commercial project, refer to the Deadline Chart, within this email, for the current timeline on the lien process.

REMEMBER –   IF YOU ARE A 2ND TIER CLAIMANT OR ARE WORKING ON A RESIDENTIAL PROJECT, YOUR NOTICE LETTERS AND AFFIDAVITS ARE DUE 1 MONTH EARLIER THAN 1st TIERED CLAIMANTS ON COMMERCIAL PROJECTS.


November Mechanic’s Lien Deadlines

Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after August 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

October Mechanic’s Lien Reminder

In order to make sure you are filing your mechanic’s lien and notice letters timely, first you really need to know whether or not you are a 1st Tier or 2nd Tier Claimant.
1st Tier Claimant:

  • One who works directly for, or supplies materials directly to, the original contractor
  • Has a contract, written or not, with the original contractor, but not with the owner

2nd Tier Claimant:

  • One who works directly for or supplies directly to any first tier or other lower tier subcontractor
  • Has a contract, written or not, with a first tier or lower tier subcontractor

If you have a contract directly with the Owner, technically, under mechanic’s lien laws, you are considered an original contractor.  Pursuant to the lien laws, the project can have many original contractors on a job.

Once you know what type of Claimant you are refer to the Deadline Chart, within this email, for the current timeline on the lien process which depend on the type of property the work was performed on – Commercial or Residential.

REMEMBER –   IF YOU ARE A 2ND TIER CLAIMANT, YOUR NOTICE LETTERS AND AFFIDAVITS ARE DUE 1 MONTH EARLIER THAN 1st TIERED CLAIMANTS ON COMMERCIAL PROJECTS.

October Deadlines


Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after July 1, 2009.
Your mechanic’s liens are timely for work done any time after June 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after August 1, 2009.
Your mechanic’s liens are timely for work done any time after July 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after August 1, 2009.
Your mechanic’s liens are timely for work done any time after July 1, 2009.

September Lien Reminder

To All,

Last month, we talked about how to calculate “When the work was performed.”
This month I want to talk to you about the potential pitfalls of filing mechanic’s liens on your own.  If you can’t say “yes” to all of these questions, then you need to have an attorney, specialized in the field of lien laws, to send out your mechanic’s lien notice letters and liens:

1. Is the property address exactly correct?

2. Do you have the proper legal description?

3. Do you know who the owner is and have their correct entity name?

4. Do you know who you are required to send notices of potential liens to and how you are required to file them?

5. Do you know the specific language that the Texas Property Code requires for your type of job?  Did you know it depends on the following variables:

  • Is the project considered Commercial or Residential?
  • Is the project a Homestead?

6. Do you know the exact deadlines and understand what your classification is to know where you fall on the deadline charts?

  • Are you an original contractor, first, second or third tier claimant?
  • Are you supplying “specially fabricated goods?”
  • Do  you supply the product or labor at the end of the job thus triggering “special” rules relating to when the project has been “substantially com­plete?”

7. Are you using a form, created by an attorney, that is more than a year old and does not have the more recent updates from the Texas Property Code?

Residential Project

Work Performed

1st and 2nd tier notices to owner/g/c

Lien affidavit

June

15-Aug

15-Sep

July

15-Sep

15-Oct

August

15-Oct

15-Nov

September

15-Nov

15-Dec

October

15-Dec

15-Jan

November

15-Jan

15-Feb

For all Claimants:
Your notice letters are timely for work done any time after July 1, 2009.
Your mechanic’s liens are timely for work done any time after June 1, 2009.

Commercial Project

Work Performed

2nd tier notice to g/c

1st tier notice to owner and 2nd tier notice to owner/g/c

Lien affidavit

May

15-Jul

15-Aug

Sept. 15

June

15-Aug

15-Sep

15-Oct

July

15-Sep

15-Oct

15-Nov

August

15-Oct

15-Nov

15-Dec

September

15-Nov

15-Dec

15-Jan

October

15-Dec

15-Jan

15-Feb

1st Tiered Claimant:
Your notice letters are timely for work done any time after June 1, 2009.
Your notice letters are timely for work done any time after June 1, 2009.
2nd Tiered Claimant:
Your notice letters are timely for work done any time after July 1, 2009.
Your mechanic’s liens are timely for work done any time after May 1, 2009.

Kelly M. Davis

Kelly M. Davis & Associates, LLC