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Release the lien before I receive payment?

Texas

We are a subcontractor who recently filed a lien on remaining retainage. The GC (who was holding our money - not the owner) wants the lien released before they will release a check. Is this standard procedure? If I lift the lien before receiving money, do I have any recourse?

3 replies

Jul 20, 2020
Is it okay to hand them an executed (but not filed) lien release when I pick up the check, and then file the release assuming the check is good?
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Jul 23, 2020

Under the Texas Property Code, a general contractor cannot force you to sign an unconditional release of lien before you receive the payment. Instead, I would recommend signing a "conditional" release of lien and provide that to the General Contractor. The language in a conditional release specifically states that the lien is not released until payment is receievd - this way, if the general contractor refuses to pay after receiving the waiver, it's unenforceable and your lien rights remain in place. 

Feel free to give me a call, email, or text on my direct line to discuss further how I may be able to help. I look forward to hearing from you. 

Sincerely,  

Martin C. Law, Partner 

Patout | Law, PLLC 

P: (346) 327-2501 | E: mlaw@patoutlaw.com 

W: www.patoutlaw.com  

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Jul 23, 2020
You can provide a Conditional Release, since it is conditioned on receiving payment and the check clearing the bank. Feel free to call me if you need further information 210-733-6235
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