Full question:
Our construction company registered a Materialman's Lien for material and labor against a home located in Flower Mound, TX in Jan 2004. In June 2005 Wells Fargo sold the same home to another homeowner without paying us. As the lien was a substantial amount, $760,000 what rights do we have regarding this lien, as we never released Wells Fargo from their obligation, never collected from the current homeowner who was the original purchaser from the bank. What is the statute of limitations in the state of Texas to collect against a M & M lien, and did we have to do anything more at the county to keep it current?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Texas
Answer:
A mechanic’s lien or affidavit claiming a mechanic’s lien filed under Section 53.052 may be discharged of record by failing to institute suit to foreclose the lien in the county in which the property is located within the period prescribed by Section 53.158, 53.175, or 53.208. A breach of contract suit in Texas must be brought within 4 years of when payment was due.
Please see the following TX statutes:
§ 53.158 PROP. Period for Bringing Suit to Foreclose Lien
(a) Except as provided by Subsection (b), suit must be brought to
foreclose the lien within two years after the last day a claimant may
file the lien affidavit under Section 53.052 or within one year after
completion, termination, or abandonment of the work under the original
contract under which the lien is claimed, whichever is later.
(b) For a claim arising from a residential construction project, suit
must be brought to foreclose the lien within one year after the last day
a claimant may file a lien affidavit under Section 53.052 or within one
year after completion, termination, or abandonment of the work under the
original contract under which the lien is claimed, whichever is later.
§ 53.175 PROP. Action on Bond
(a) A party making or holding a lien claim may not sue on the bond
later than one year after the date on which the notice is served or after
the date on which the underlying lien claim becomes unenforceable under
Section 53.158.
(b) The bond is not exhausted by one action against it. Each named
obligee or assignee of an obligee may maintain a separate suit on the
bond in any court of jurisdiction in the county in which the real
property is located.
§ 53.208 PROP. Action on Bond
(a) A claimant may sue the principal and surety on the bond either
jointly or severally, if his claim remains unpaid for 60 days after the
claimant perfects the claim.
(b) The claimant may sue for the amount of the claim and court costs.
(c) The suit must be brought in the county in which the property being
improved is located.
(d) If the bond is recorded at the time the lien is filed, the claimant
must sue on the bond within one year following perfection of his claim.
If the bond is not recorded at the time the lien is filed, the claimant
must sue on the bond within two years following perfection of his claim.
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.
