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TX mechanics lien & contract terms

Texas

Our lien deadline is approaching on a TX job which we are owed retainage. The GC states per the contract, retainage is not released until they receive final payment from the owner. I found a section in their contract that says, "Final payment to subcontractor is expressly subject to the condition precedent that the GC has received full payment for subcontractor's work from Owner." Does this contract term prevent us from filing a mechanics lien?

4 replies

Jul 13, 2021
No, this clause does not prevent you from sending notices or filing your mechanic's lien affidavit.
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Jul 13, 2021

Great, thanks!

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Jul 15, 2021
It does not prevent the actual ability to physically file a lien affidavit and you might want to think twice about not timely filing a lien affidavit by the deadline required by the state lien statute because you are holding off from filing as the result of something that is contained in a contract.
 

This response is general in nature and cannot be construed as legal advice, given that not enough facts are known. Any comments offered on this site are of a general nature only, and are not meant to create an attorney-client relationship. You are encouraged to seek independent and private counseling for a complete review of your case

 
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Aug 22, 2022

The mechanics lien certificate is issued by the Department of Motor <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->[url=https://drift-hunters.com/]drift hunters[/url]
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annually. 

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