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?
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