Lovein Ribman Texas Construction Law

Texas Construction Attorneys

What is a Notice of Lien Filing Demand Letter?

Within no later than five days from recording a mechanic’s Lien Affidavit, the Lien Claimant is required to serve the Lien Affidavit on the Property Owner and General Contractor (if applicable); serving the Lien Affidavit as a standalone document satisfies the minimum statutory requirements. However, doing the minimum is rarely enough to obtain the desired results. Instead of serving the Lien Affidavit alone, Claimants can use this rare opportunity to serve the Lien Affidavit as an enclosure to a Demand Letter, wherein the Lien Claimant: (1) summarizes and argues the disputed facts; (2) identifies and applies applicable Contract provisions that have been breached and the consequence of the breach; (3) informs the Debtor that pursuant to the Prompt Payment Act interest is accruing on the principal amount owed at 1.5% a month and will continue to accrue until paid in full; (4) that pursuant to the Trust Fund Statute anyone who has diverted Project funds instead of paying the Lien Claimant may be personally liable and subjected to civil and criminal liability; and (5) clearly informs the Property Owner and Debtor that if the amount owed is not paid within the stated time, that a civil lawsuit will be filed to foreclose the Lien and to enforce the above-referenced statutes. Lien Claimants who use online Lien services miss this rare opportunity since Lien services simply satisfy the bare minimum requirement of recording and serving the Lien Affidavit.