Statute of Limitations For Filing a Lien in Texas Filing a lien in Texas is simple and easy. Liens are the legal claims against the owner of the property for the work done or the materials supplied. Before selling the property, liens must be cleared. Almost all liens are paid based on the date recorded. In Texas, the statute of limitations for filing a mechanic's lien varies based on the status of the person filing the lien. Mechanics lien in Texas, on the property, must be filed with the clerk in the county where the work on the property was performed. 1. Original Contractor An original contractor, according to Texas law, is one who directly deals with the owner of the property or with the owner's agent. An original contractor is also known as a general contractor. Statute of limitation for filing a lien for an original contractor begins with filing an affidavit. Filing of lien affidavits must be done on or before the 15th day of the fourth month, after the last day of the month, when the owner terminated the contract or the last day of the month during which the contract was completed, settled, or abandoned. The earlier of the two dates starts the statute of limitations for filing the affidavit. Read more: Fix Quickbooks Web Connector Error 2. First-Tier Subcontractors The first-tier subcontractors in Texas are the ones who will be having the agreement with the original/general contractor to perform work on the property. Filing a lien for first-tier subcontractors, they must send a notice letter to the original contractor, notifying their unpaid dues. The statute of limitations for sending notice letters is no later than the 15th day of the third month after each month that the materials & services were delivered or performed. First-tier subcontractors must file a lien in the stipulated time, which is the 15th day of the fourth month; after the last day of the month, they supplied materials or services. The copies of affidavits must be sent to the real property owner as well as the original contractor within 5 calendars days after filing the lien. 3. Second-Tier Subcontractors The second-tier subcontractors in Texas are not associated with original contractors. Second-tier subcontractors are also known as sub-subcontractors, which have agreements with first-tier subcontractors. The statute of limitations for second-tier subcontractors is one month less than first-tier contractors. They must also provide a preliminary notice to the original contractor before filing a lien. Second-tier subcontractors must send the preliminary notice before the 15th day of the second month after each month that they supplied materials or labour. And must file a lien in the stipulated time, which is the 15th day of the third month; after the last day of the month, they supplied materials or services. 4. Material Suppliers
Material suppliers are also eligible to file a lien against properties in Texas. Material suppliers should have agreements with the original contractor, first-tier subcontractors or second-tier subcontractors. There is a separate statute of limitations for filing a lien for material suppliers who have supplied specially fabricated materials for a project that were not used in the project. First-tier fabricators have to send a notice to the property owner, and second-tier fabricators have to send a notice to the original contractor before the 15th day of the second month, during which the fabricator received the order for materials or supplies. Any other notices may apply under special circumstances. After giving proper notice, the fabricator must file lien affidavit before the 15th day of the fourth month after the last month during which the materials were delivered, required, or when the contract was breached. Read more: Fix Quickbooks Web Connector Error
