The Rio Grande Valley has had so much growth over the past few years. There are several construction sites across the area, opening doors to contractors, construction workers, material providers, subcontractors and suppliers. In the construction field, lines can easily get blurred in the payment process and you can end up with the short end of the stick. Have you considered filing for a lien for your upcoming projects? Let’s go over some important basics about this topic.
What is a Lien?
Acquiring a lien is something you should look into. Liens are a type of affidavit that state that the owner of a property owes you a certain amount of money for services you’ve provided. They are sworn legal documents used by certain creditors in order to guarantee payment for goods, services and labor.
They state the specifics of a project that’s underway along with details on what is owed. If you’re a construction worker, contractor or subcontractor that’s been hired to complete a certain construction job, you can file a specific type of lien, known as a mechanic’s and materialman’s liens, against the property to secure your payment.
Who Can Acquire Them?
These liens are not limited to only construction workers or contractors. If you’re providing services such as painting, plumbing or even automotive repair, you are also entitled to file a lien. Liens can be filed even though work is not fully complete yet.
How They Work
In most cases, there is a threat of foreclosure or a temporary “cloud” on the title of the property until the lien is paid in full. This would put a damper on the owner’s plans to sell or refinance the property, making it significantly harder for them to do so until the lien itself is paid. Liens are open to the public and are typically kept in the property records department of the county clerk’s office, giving the owner an even greater incentive to pay it in a timely manner. They won’t be able to regain a clear title otherwise.
As the Rio Grande Valley continues to grow, we can conclude that anyone involved in a construction project is at risk of facing disputes on payments, claims and damages. We’re aware of the damage that can easily surface if liens are not properly obtained from the beginning. If you’re a maker of materials, you can still file a mechanic’s lien as soon as the products are finished. Do not waste any time and act now.
Here to Help You
Having an attorney that’s knowledgeable in this area can make all the difference in your situation. For more information, contact our highly-skilled attorneys at 956.686.6606.