Welcome to the Kazi Law Firm! We are a boutique law firm steeped in Texas tradition personifying the warmth and congeniality consistent with southern hospitality. We believe in preserving integrity and professionalism with true Texan charm, staying true to our roots, while providing essential, affordable legal services to all. Located just north of Dallas, Texas in the rapidly growing suburb of Frisco; the Kazi Law Firm concentrates on contracts drafting and review, immigration law, will & estates, real estate law, landlord, tenant, mediation, and general business law needs.
With the surge of new homes being built in the booming Dallas/Fort Worth suburbs, I thought it was necessary to talk about construction liens or commonly referred to as mechanic’s liens. A mechanic’s lien is called by several other names, such as a supplier’s lien or a material-man’s lien. This type of lien is used primarily in the construction industry and helps service and materials providers to collect their debts.
A mechanics lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.
How to File a Mechanic’s Lien:
Each state has its own set of rules on when a lien can be filed. They also set out who can file a lien. Most of the time, there is a requirement for the parties involved to send a preliminary notice before the project begins for them to qualify for rights to file a lien.
The primary rule that extends across the United States, no matter which state you’re line, is that as long as you have furnished or supplied services, equipment, materials, and labor to a project and the property was improved in whatever way as a result of that, then you have a right to file a lien against the property (must do so soon after you supply or furnish). Essentially this is a long way of saying that this type of lien is meant to protect you from clients who do not honor their debts.
Mechanic’s liens are highly effective and expedite the payment process substantially. The reason behind this expeditious reimbursement is that as soon as you file a lien, many complications arise for the property owner. In order for the property owner to resolve such issues, they must pay you quickly.
Complications for the Property Owner:
- The property immediately gets encumbered by your lien, complicating its future sale.
- If the project has a lender, the mechanic’s lien may get priority over that lender’s interest in the same property – causing the lender to suspend funding for the project until the lien has been lifted.
- Most contracts have a requirement that the property be free of liens; filing a mechanic’s lien causes jeopardizes the owner’s other contracts.
- A mechanic’s lien puts you at the top of the priority list when the owner files for bankruptcy.
- A mechanic’s lien can freeze the cash flow on the project.
- You capture the owner’s attention quickly and effectively.
Given the extensive list of potential problems that a property owner will face if a mechanic’s lien is filed against him/her, it’s prudent to pay your contractors promptly and in full once the job is complete. If there is a dispute with your contractor, it’s best to talk it through and come up with an amicable resolution. Keeping the lines of effective communication open is crucial throughout a construction project.
I built my law practice on the premise of being a life raft in a sea of sharks. I want to be an advocate for those that have been wronged and are too intimidated to seek help. My firm is here to explore your options, guide you through your legal journey, and give you that safe space to ask questions! There’s no such thing as a stupid question…Only the ones you don’t ask. So, my question to my clients is not “do you have any questions?” But rather “what questions do you have?”
As always, the Kazi Law Firm is standing by to help you in your time of need. Don’t hesitate to contact us today. We specialize in real estate law, landlord-tenant disputes, immigration, and wills & estate planning. Family is at the core of our practice. Just as we treat our family with respect and understanding, we treat yours. Come join the Kazi Law Firm family today!
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