Constitutional Liens: Why General Contractors Should Still File Liens After the Deadline


hello and Happy New Year everybody this
is attorney Ken Stephens from law firm Stephens PLLC and today I’m hoping to
throw a life raft to some of you that have done work for people who were
victims of Harvey and maybe you haven’t got your money whether it’s a commercial
or residential property and so I’m looking at the timeline right now we’re
in January a lot of you probably started doing work in August or September so if
we go from August September October November December January whether it’s
residential or commercial we’re past our lien filing deadlines the same
can be said if you’ve done work in September your lien deadline is either
passed if it’s residential or it’s coming up so what do you do you know if
you’ve done work on a project and you are past the lien filing deadline and
you are a general contractor? Do you just you know throw your hands up and kind of
you know walk away from the job walk away from the money? Do you necessarily
have to just go through the litigation process immediately file a lawsuit try
to go for breach of contract? What’s what’s the best thing to do do you just
file the lien any way? Who knows right? Well the answer is you need to go ahead
and follow lien but the difference is because you’re a general contractor or a
contractor that has a direct contract with the owner you can file a
constitutional lien so it’s not necessarily going to be compliant with
the Texas property code but it doesn’t matter this is a self-executing lien. The
only reason you’re filing the lien is so that you are giving notice to anybody
who tries to purchase this property that there is a lien on the property so that
that lien that constitutional lien can be enforceable against them because if
you don’t file the lien you do still have a right to payment you do still
have a constitutional lien on the property even if you don’t file it
however if somebody were to buy that property they would not have notice of
the your lien and then they would be able to say well because I didn’t know
about it I’m a bona fide purchaser and I have to you know worry about this lien
and the law would agree with them. So what you do if you’re past your deadline
you are general contractor you have done the work? Make sure you include
constitutional name language in your lien and file it that way you still have
a remedy you still have a lien on the property. Anyway I hope this is helpful
you all share it and good luck out there. Happy building
let’s make 2018 a great year

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