Menu
Home>Levelset Community>Legal Help>How do I know if I need to file a commercial lien or a residential lien?

How do I know if I need to file a commercial lien or a residential lien?

Texas

This project is for labor and materials provided for a multi-family home property with about 140 units. The owner is a joint venture. Is this considered residential or commercial? Need to know what type of lien to file or find out if it matters. What is the difference between residential and commercial as far as right and requirements?

4 replies

Jul 7, 2021
This would be considered a regular project because it's not a residential homestead. It does matter, because just for starters a contractor's lien rights are far more restricted when dealing with a homestead; listing out all the differences would take a while.
0 people found this helpful
Helpful
Jul 7, 2021
Thank you. So is this considered Commercial since it is not a homestead? What do you mean my regular project?
0
Report Spam
Jul 7, 2021

 There are different deadlines that have to be met to perfect a lien on a residential construction project. There are also additional requirements that have to be met if the residential construction project is being performed on the owner's homestead.  

A “residential construction project” is a project for the construction or repair of a new or existing single-family house, duplex, triplex, or quadruplex or a unit in a multiunit structure used for residential purposes that is: (A) owned by one or more adult persons; and (B) used or intended to be used as a dwelling by one of the owners. 

If you are a sub working on a typical multifamily project, then the project is likely not a “residential construction project.” If you were hired to work on one unit and the owner of
the unit lived in the unit, then the project would likely be considered a “residential construction project.” 

If your project is not a residential construction project, then you have to comply with all of the standard requirements for perfecting a lien.  

0 people found this helpful
Helpful
Jul 8, 2021
A 140-unit, multi-family property is a commercial project. The time you have to give notice and file your lien is longer for commercial projects than residential.
0 people found this helpful
Helpful