My sister bought a house from a builder that was new construction, the sale happened in 2019 and a general warranty deed was prepared. Now she's trying to sell the property, and an M&M lien has popped up that was placed on there in 2020 from someone the builder hadn't paid. Help!
The legal analysis would start with a review of your sister's contract with the builder, and then extend to any communications which have occurred, especially any certified letters from the lien claimant. The lien claimant had to provide notice of non-payment with a request that you trap funds from your builder by the 15th day of the second month after the end of the month in which the lien claimant provided labor or materials. If your sister did not receive the certified mailings, then the lien may be invalid.
The builder is responsible for the claim by the lien claimant. Your sister should consider preparing a letter to mail by certified mail, return receipt requested, to the builder to set out the facts and to demand the relief that she wants. She should make sure that your letter is professional and business like as it may be evidence later.
If the lien is invalid, your sister should write a letter by certified mail to the lien claimant to demand that the lien be released, pointing out why the lien is invalid. If the lien claimant does not voluntarily release the lien, he could be liable for a fraudulent lien under Chapter 12 of the Texas Civil Practice & Remedies Code. Chapter 12 can award damages of $10,000 or actual damages whichever is greater, plus attorney's fees.
She can also demand that the lien be released under Section 53.160 of the Texas Property Code, which provides for a summary procedure (no trial necessary) for the removal of an invalid lien on someone's homestead.
If need be, she could consider filing suit in small claims court (assuming that her claim is less than $20,000), using her letter as evidence.
Retain a construction attorney to evaluate your sister's legal situation and to provide advice.
Good luck.
Hello,
Summary Motion to Remove Invalid Lien & Declaratory Action on the validity of the lien. Filed in District Court. Very easy process.
E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com
Things are really bad. You should seek the help of an attorney basket random
I agree, you should consult an attorney, especially if you are seeking compensation.
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