Dallas Lien Lawyer FAQ

Texas gives contractors and subcontractors powerful tools to collect unpaid money. Your options include: filing a mechanic's lien on the property, which creates a legal claim against the real estate and makes it difficult for the owner to sell or refinance without addressing your claim; sending a funds trapping notice to freeze money still held by the property owner before it is paid to the GC; filing a breach of contract lawsuit directly against the party who owes you money; and pursuing a trust fund claim if the party who received payment diverted it away from paying you. The right approach depends on your specific situation, who owes the money, how far along the project is, and how much time remains before your deadlines expire. Contact us as early as possible.

Yes. Texas law does not require a written contract for lien rights to exist. Oral agreements are sufficient. However, a written contract makes your case significantly easier to prove. If your agreement was verbal, preserve every piece of evidence: text messages, emails, photos of completed work, invoices, and any written acknowledgment of the debt.

No. Your lien rights as a subcontractor run against the property owner directly, not just against the GC who hired you. If the owner has not paid the GC, the owner may still owe retainage and may still be liable to you through the retainage and funds trapping mechanisms. The GC's collection problems with the owner do not excuse the GC's obligation to pay you.

Possibly, depending on what assets remain and whether a trust fund claim is available. If the contractor received construction payments and misapplied them, the officers and individuals who controlled those funds may be personally liable to you under Texas trust fund law, even if the company itself is dissolved or bankrupt. You may also have a lien against the property where the work was performed if your filing deadlines have not expired. Contact us to evaluate what remedies remain available.

The timeline varies significantly depending on whether the other party pays voluntarily after the lien is filed, whether a foreclosure lawsuit is needed, and whether the case goes to trial. In our experience, the lien itself, combined in appropriate cases with a funds trapping notice, often prompts voluntary payment within weeks. If a foreclosure lawsuit is necessary, the timeline extends to months or longer depending on court scheduling and whether the case settles before trial. =========================================================

For most commercial subcontractors and suppliers, the lien affidavit must be filed with the county clerk by the 15th day of the fourth month after the last month in which you furnished labor or materials on the project. Example: your last day of work was in August; your lien deadline is December 15th. For original contractors (those with a direct contract with the owner), the deadline is the 15th day of the fourth month after the earlier of your last day of work or the date the project was completed, terminated, or abandoned. Residential projects have shorter, different deadlines. If you are not sure of your deadline, call us. We will calculate it for you.

Your mechanic's lien rights are permanently extinguished. Once that deadline passes, no court can bring them back. You may still have a breach of contract claim against the party who owes you money, but you lose the powerful leverage of a property lien. This is why acting early is so critical.

The clock starts on the last date you personally furnished labor or materials on the project, not the date the overall project was completed by others. If you performed your scope and left months before others finished, your accrual date is your last day of work. Keep detailed records of your last day on the job.

It may not be. Call us immediately. The analysis depends on exactly when your last day of work was, what notices were sent, and what has happened since. In some situations, the deadline may not have passed; in others, there may still be remedies available even if the lien deadline is gone. Do not assume it is over. Let us evaluate it first.

The affidavit must contain: a sworn statement of the amount of the claim; the name and last known address of the owner or reputed owner; a legal description of the property (a street address alone is not sufficient); the claimant's name and address; the name of the original contractor if you are a subcontractor or supplier; and a description of the work performed or materials furnished. Missing or incorrect information in any of these required elements can invalidate the lien.

The reputed owner is the person or entity the public records show as owning the property. You find this through the Central Appraisal District website for the county where the property is located. Use the owner name exactly as it appears in those records. See our Central Appraisal Districts page for links to each county's CAD.

No. Texas law requires the formal legal description of the property, not just a street address. Using only a street address can invalidate the lien. The legal description is available through the county Central Appraisal District website for free or at low cost.

The lien affidavit must be filed with the county clerk in the county where the property is physically located, not where you are based, not where the owner is based. Filing in the wrong county renders the lien unenforceable.

Yes. Texas law gives subcontractors and materialmen lien rights against the property even without a direct contract with the owner. However, subcontractors must send pre-lien notices that original contractors are not required to send. See our Lien Rights page for the specific notice requirements.

On commercial projects, you must send a written pre-lien notice to both the owner and the general contractor by the 15th day of the third month following each month in which you furnished labor or materials and were not paid. You send this notice for each month of unpaid work, not just once at the end. Missing a monthly notice for a particular period can eliminate your lien rights for that period.

Yes. Texas lien law covers multiple tiers of contractors, including sub-subcontractors. Your notice requirements and the maximum lien amount differ from first-tier subcontractors. Contact us to confirm what rules apply to your specific tier and project.

Missing a monthly notice can eliminate your lien rights for the amounts owed during that specific period. It does not necessarily eliminate your rights for periods where proper notice was sent. The analysis depends on which months were covered and which were not. Contact us. The situation may be more recoverable than you think.

Funds trapping is a mechanism under Texas law that allows a subcontractor to send a written notice to the property owner demanding that the owner withhold from future payments to the general contractor the amount owed to the subcontractor. Once the owner receives this notice, the owner must hold those funds until your claim is resolved. If the owner pays the GC anyway after receiving the notice, the owner may become personally liable to you for that amount. It is a powerful and underused tool for unpaid subcontractors.

It is too late only if the owner has already made all payments to the GC, leaving no more funds to trap. But if the owner has not yet made the final payment, or if there is a next progress payment coming, there may still be time to trap those funds. Contact us immediately if you believe funds may still be in the owner's hands.

They are complementary tools, not alternatives. The trapping notice freezes money still in the owner's hands; the lien creates a security interest in the property. We typically pursue both simultaneously for unpaid subcontractors because the combination provides the broadest protection and the most leverage.

Retainage is the 10 percent of each progress payment that a property owner is legally required to withhold from the general contractor during the project. The purpose is to protect subcontractors: it creates a fund in the owner's hands that subcontractors can reach even if the GC fails to pay. The owner must hold the retainage for 30 days after the project is actually complete before releasing it to the GC.

Possibly. If the owner paid retainage to the GC early, before the 30-day retention period expired, the owner may be personally liable to subcontractors who properly perfected their lien rights for the amount that should have been withheld. This is a direct personal liability against the owner, separate from any claim against the GC. Tell us what happened and we will evaluate the owner's potential liability.

Yes, significantly. Property Code Subchapter K applies only to residential construction projects and imposes additional notice requirements, shorter deadlines, homestead contract requirements, and disclosure obligations that do not apply to commercial projects. Failing to comply with Subchapter K can void a lien entirely even if the affidavit itself was perfectly filed. See our Residential Projects page for a full explanation.

Yes, but only under strict constitutional and statutory requirements. The work must be performed under a written contract that is signed by both spouses (if the owner is married), describes the work to be done, and is filed with the county clerk before any work begins. A verbal agreement or a contract signed by only one spouse will not support a valid lien on a Texas homestead, regardless of how good the work was. This is the most common and most costly mistake contractors make on residential projects.

Possibly. The homestead requirements are strict and the consequences of non-compliance are severe. However, the full analysis depends on the specific facts: what contract documents exist, when they were signed, whether both spouses signed, and when work began. Contact us before concluding that your lien rights are gone. There may be options, and the sooner you call, the more we can evaluate.

Yes. Residential projects under Subchapter K have different notice deadlines and procedures. The specific deadlines depend on whether you are an original contractor or a subcontractor, and on the nature of the project. Do not use the commercial lien deadlines on a residential project.

Filing the lien affidavit is step one: it creates a legal claim against the property. Step two is filing a lawsuit in court to foreclose the lien, which is what actually forces the issue toward payment or a court-ordered sale of the property. Many debtors pay voluntarily after a lien is filed, to avoid a lawsuit and to clear their title. If they do not, we file the foreclosure lawsuit.

The foreclosure lawsuit must be filed on or before one year from the date the lien was filed. Once that date passes, the lien is permanently unenforceable.

Our advice is no. The fact that you needed a lien tells you what you need to know about the people who owe you money. Institute suit promptly. Waiting risks missing the foreclosure deadline and gives the debtor more time to encumber or transfer the property.

A bankruptcy filing triggers an automatic stay that temporarily halts collection efforts, including a lien foreclosure lawsuit. But your valid perfected lien is not automatically voided: a secured creditor with a perfected lien retains secured status in the bankruptcy. Contact us immediately if a bankruptcy is filed. The bankruptcy may affect your foreclosure deadline, so the process must be handled carefully.

Under Texas law, money paid to a contractor or subcontractor on a construction project is treated as a trust fund for the benefit of the workers and suppliers who are owed payment. A contractor who receives those funds and uses them for anything other than paying the project's beneficiaries may be liable for misapplication of trust funds, both civilly (personal liability to the unpaid parties) and criminally (theft under the Texas Penal Code).

Yes. Texas law specifically provides that any officer, director, or agent of a contractor or subcontractor who has control over trust funds and participates in their misapplication is personally liable to the beneficiaries. If the company is insolvent or dissolved, you may still have a viable claim against the individuals who made the decision to divert the funds.

The key questions are: Did the contractor actually receive payment on the project? Did they use those funds for something other than paying the project's beneficiaries? A contractor who received your money and used it to pay unrelated debts, other project expenses, or personal expenses is likely misapplying trust funds. Contact us and we will assess whether a trust fund claim is viable based on the financial trail.

No. Mechanic's liens cannot be filed against government-owned property. Your exclusive remedy for nonpayment on a public project is a claim against the payment bond that the general contractor is required to post before work begins. Payment bond claims have their own notice requirements and deadlines. Contact us immediately.

On public projects, ask the government agency directly. They are required to make the bond available for inspection. On private projects, ask the property owner or general contractor. The sooner you know a bond exists, the sooner you can take the correct steps to protect your claim.

Possibly not all of them. While the bond claim itself may be lost, you may still have a breach of contract claim against the GC or a trust fund claim if funds were misapplied. The analysis is fact-specific. Contact us and we will assess what remedies remain.

A conditional lien waiver only takes effect if and when payment is actually received and cleared. An unconditional waiver eliminates your lien rights immediately upon signing, regardless of whether payment ever arrives. Never sign an unconditional lien waiver until payment has actually cleared your bank account, not just been deposited, but cleared.

Not necessarily. If you signed a conditional waiver, the waiver only takes effect upon actual receipt of payment. Since the condition was not met, the waiver may not be effective. Contact us immediately. The analysis is fact-specific, but the earlier you call, the more options remain available.

Some waiver forms include language that waives not just lien rights but also bond claim rights and other remedies. Read the full document before signing, not just the headline. If you are uncertain about what you are signing away, have us review it before you sign.

There are four main options: (1) negotiate a voluntary release directly with the claimant by resolving the underlying dispute; (2) bond over the lien by posting an indemnity bond, which discharges the lien from the property while the dispute continues; (3) challenge the lien in court if it is legally defective or based on false information; or (4) in some cases, wait out the foreclosure deadline if the claimant is unlikely to pursue it. Each option has tradeoffs. Contact us and we will evaluate which approach makes sense for your situation.

Bonding over the lien is usually the fastest path. Once a bond is posted and accepted, the lien is discharged from the property's title and the sale can proceed. The underlying dispute continues against the bond fund, not the real estate. If you have a pending closing and need the lien addressed quickly, call us immediately.

No. Mechanic's lien rights are created by the Texas Property Code, not by your contract. An arbitration clause in a construction contract cannot eliminate statutory lien rights. You may still file a lien affidavit with the county clerk. However, the lien foreclosure lawsuit may need to proceed in arbitration rather than in district court, depending on the specific language of the clause. Contact us to evaluate the interaction between your arbitration clause and your lien rights before taking action.

Respond promptly. Failing to respond or participate in arbitration can result in a default award against you. Read the arbitration clause carefully, note the response deadline, assess whether you have counterclaims, and contact an attorney immediately.

The firm was founded in January 1994 by Darrell W. Cook, a former CPA with a law degree from Southern Methodist University. We have been representing Texas contractors, subcontractors, materialmen, and property owners in construction lien matters continuously for over 30 years.

Both. We represent unpaid contractors and subcontractors who need to collect money owed to them, and we also defend property owners and general contractors who have liens filed against their projects or who are sued in connection with construction matters. If you have a construction payment dispute, from either side, contact us.

We check email constantly during the week and frequently on weekends. We respond as quickly as possible to all inquiries. If your situation involves an approaching deadline, tell us that in your message so we can prioritize your inquiry.

We are based in Dallas and regularly handle lien matters in Dallas County, Tarrant County, Collin County, Denton County, Rockwall County, Ellis County, Kaufman County, and Johnson County. We also represent out-of-state contractors who performed work on Texas projects. If your project is in Texas, we can help.