Full question:
I have a field service repair business in Liberty, Texas. Most of the time we travel to the work site or the customer's facility to repair the equipment. How do I protect my interests in getting paid for the labor and parts that were performed or used in the repair?
- Category: Judgment Liens
- Date:
- State: Texas
Answer:
To protect your interests in getting paid for labor and parts in Texas, consider using a mechanic's lien. This legal tool allows contractors, subcontractors, and suppliers to claim a lien against a property for unpaid work or materials provided. The lien can help ensure you receive payment before the property can be sold or refinanced.
In Texas, a worker who repairs an item, such as a vehicle or equipment, can retain possession of that item until payment is made (Tex. Prop. Code § 70.001). If the customer fails to pay, you may also have the right to repossess the item if certain conditions are met, such as having the customer sign a notice about the potential for repossession.
Additionally, if you obtain a judgment against a customer for non-payment, you can file a judgment lien on their real property (Tex. Prop. Code § 52.001). This lien will attach to any real estate owned by the debtor in the county where the lien is recorded, helping secure your claim for payment.
It's important to follow the specific filing requirements and timelines for liens in Texas. Consulting with a legal professional can provide guidance tailored to your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.