Lovein Ribman Texas Construction Law

Texas Construction Attorneys

How to Foreclose a Mechanic’s Lien?

Most mechanic’s Lien claims are resolved well before a judge has the opportunity to issue an order to foreclose (sell) the Property as a result of a mechanic’s Lien. However, in those situations wherein it becomes necessary to obtain an Order, the following steps are required to foreclose the Lien:

Step One: If not hired directly by the Property Owner, the Owner’s Agent, or a Tenant, then timely serve the Notice of Claim.

Step Two: File the Lien Affidavit with the County Clerk’s Office in the county where the Property is located.

Step Three: Serve the Lien Affidavit on the Property Owner and the General Contractor within no later than five days from recording the Lien Affidavit.

Step Four: File a civil Lawsuit against the Property Owner and General Contractor (if applicable) in the county where the Property is located within no later than one year from the last date the Lien Affidavit could have been timely filed. The Petition should contain a cause of action to foreclose the Lien Affidavit and all other relevant causes of action and necessary parties.

Step Five: Serve the Lawsuit on the defendants.

Step Six: If the claim is not resolved by the time the matter is set for trial (typically anywhere from 6 months to 24 months from when the Lawsuit was filed), the Lien Claimant will need to establish at trial that the Lien amount is owed, taking into account all offsets, and that all statutory requirements for perfecting the Lien were in fact timely satisfied. If the Lien Claimant meets this burden of proof, then the judge should issue a Judgment in the amount of the Lien, plus reasonable and necessary attorneys’ fees, costs, pre/post judgment interest, and an order to sell the Property to pay the judgment.

Step Seven: File an Application for Order of Sale with the Court to initiate sale of the Property in accordance with the Court’s Judgment/Order. Note that if the Property is sold, the Claimant will only be entitled to that portion of the sale proceeds necessary to satisfy the Judgment.