We have all heard of the term “lien”, but few people (including lawyers) can explain their meaning and significance. At The Law Offices of Cesar A. Montalvo, we explain it as a “a legal security” for payment. A lien is proscribed by statute (enacted by our legislature) or in equity (provided by common-law principles).
In Texas, both our Constitution and Chapter 53 of the Texas Property Code contemplate the nuance that folks that provide material, labor, specially fabricated, or a combination thereof, specifically in the construction industry, are entitled to receive payment for their work. It may seem like a common-sense principal but even our forefathers recognized the value in the construction trade and how important the trade is for the vitality of our country’s growth.
Placing a construction lien on an improved property is a great tool in the contractor’s legal tool box because it allows the contractor to leverage their position against a non-paying party. A successful construction lien also vests the contractor with the legal right to foreclose on the improved property and auction the property where the contractor may recover from the proceeds of the sale.
Depending on your status in the construction chain (property owner to supplier) certain rules and notices must be given in order to “perfect” or be entitled to a construction lien on property. Having a construction lien lawyer will help you navigate through the pitfalls of perfecting your lien rights.