Oral contract for remodel on Homestead property in Texas. I have paid out 80K to subs and material suppliers and homeowner refuses to reimburse me and pay my fee for work. From what I read, a constitutional lien is not enforceable because homestead property in TX is exempt. If I go to court and get a judgement in my favor, a judgement lien can not be placed on homestead property in TX. Did I as the GC get beat by this customer?
Unfortunately, this situation is quite complicated and not
having a written contract does hinder your ability to file a mechanics lien on
the homestead property. While you are also correct that a constitutional lien
is not enforceable against a homestead property and a judgement lien will not
attach, you do still have some recourse in this situation.
You can still sue the homeowner and seek a judgement. The homeowner
may, and likely does have other non-exempt assets that you can pursue execution
against. Additionally, if the homestead is sold, you would have some recourse
to potentially recover from the proceeds of the sale. Ultimately, just the
presence of a judgement will put pressure on the homeowner to pay what they owe
and will likely looked at unfavorably by title companies in the future should
they attempt to convey title.
Moving forward, if you decide that you would like to pursue
legal action or if you would like help from a lawyer, please feel free to give
us a call at Murphy Legal. We have very experienced construction attorneys and
handle cases all across Texas. Our phone number is (979) 690-0800.