US Legal Forms
Legal Resources
Questions & Answers
Real Property
Is a release of lien from a supplier valid if signed by a "credit analyst"?

Is a release of lien from a supplier valid if signed by a "credit analyst"?

Q: Who can sign a lien release?

Typically, a lien release should be signed by someone with the authority to bind the company, such as an officer. If a credit analyst is signing, it’s important to confirm that they have the authority to do so on behalf of the supplier.

Q: What happens if a lien release is not provided?

If a lien release is not provided after payment, the creditor may still have a claim against the property. Under Texas law, suppliers are required to provide a release within ten days of a written request after payment (Tex. Prop. Code § 53.152).

Q: Can a lien be enforced after a release is signed?

Once a lien release is properly signed and executed, the lien is generally considered extinguished. However, if there are issues with the authority of the signer, it could lead to disputes. Always ensure that the release is valid and filed appropriately.

Q: What should I do if a lien release is signed incorrectly?

If a lien release is signed incorrectly, it may be necessary to request a new release from the creditor. Ensure that the new document is signed by someone with proper authority to avoid future complications.

Full question:

Is a release of lien from a supplier valid if signed by a "credit analyst"? Our major supplier of materials executes releases of lien to us with the signature of a "credit analyst" despite the fact we clearly ask for an officer to sign the document.

Category: Real Property
Subcategory: Liens
Date: 04/07/2025
State: Texas

Answer:

The answer depends on the authority of the analyst to sign on behalf of the company. Please see:

http://definitions.uslegal.com/a/agency/

The following is Texas law:

Release of Claim or Lien:When a debt for labor or materials is satisfied or paid by collected funds, the person who furnished the labor or materials shall, not later than the 10th day after the date of receipt of a written request, furnish to the requesting person a release of the indebtedness and any lien claimed, to the extent of the indebtedness paid. An owner, the original contractor, or any person making the payment may request the release.

A release of lien must be in a form that would permit it to be filed of record.§ 53.152. See Form TX-05-09 or TX-05A-09

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.

FAQs

What is a lien release?

A lien release is a legal document that removes a lien from a property once a debt has been satisfied. It confirms that the creditor no longer has a claim against the property, allowing the owner to clear the title. This document must be properly executed and filed to be effective.