Questions and Answers
What is the main difference between a lien available under the Texas Constitution and a lien under Chapter 53 of the Texas Property Code?
Constitutional liens apply only to those with a direct contract with the owner, while Chapter 53 liens can apply to subcontractors.
Who can lien a property under Chapter 53 of the Texas Property Code? (Select all that apply)
When does the clock begin to run for filing a lien under Chapter 53?
From the calendar month in which the work or materials were furnished or delivered.
As an original contractor, when do you need to file your first Lien Affidavit?
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What is the deadline to send a Notice of Filing Lien after filing an Affidavit of Lien?
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If a Subcontractor sends a 'Fund Trapping' letter, what is the Owner's obligation regarding funds owed to the General Contractor?
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How many days after a contractor completes its work must it file a notice that contractual retainage is due?
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Which of the following is NOT statutorily required to be within an Affidavit of Lien?
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How long must the Owner continue to hold statutory retainage before releasing the funds?
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Assuming required retainage was withheld by the Owner, their liability to subcontractors and suppliers will generally not exceed that required retainage.
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How can a claimant discharge its Affidavit of Lien? (Select all that apply)
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Which of the following is NOT a ground for an Owner to file a verified motion to remove a lien?
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If a nonresidential Owner does not prevail on its Verified Motion to Remove Lien, the Court should award fees to the claimant who defended its lien.
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What is required on all public projects over $50,000 in value?
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What is the deadline to file a lawsuit for nonpayment against a payment bond surety?
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Study Notes
Lien Differences and Applications
- Constitutional liens are exclusive to those with a direct contract with the property owner, while Chapter 53 liens can extend to subcontractors, providing broader coverage.
- Under Chapter 53, individuals such as masonry laborers, suppliers of building materials, and fabricators of custom items can file a lien on a property.
Lien Filing Timelines
- The count for filing a lien under Chapter 53 begins from the month that materials or labor were supplied.
- Original contractors must file their first Lien Affidavit by the 15th day of the fourth month following the delivery of labor or materials.
Notice and Obligations
- After filing an Affidavit of Lien with the County, a Notice of Filing Lien must be sent to the property owner within 5 days.
- Upon receiving a "Fund Trapping" letter, the property owner is required to withhold funds from the General Contractor until the lien filing situation is settled.
Retainage and Filing Requirements
- Contractors are obligated to notify that contractual retainage is due within 30 days of work completion.
- Owners must retain statutory retainage until 30 days after project completion, abandonment, or termination of the General Contractor.
Affidavit of Lien Details
- An Affidavit of Lien does not need to include the amounts due to the claimant's suppliers.
- Claimants may discharge their Affidavit of Lien by either failing to file a foreclosure lawsuit timely or by recording a lien release.
Dispute and Motion to Remove Liens
- An owner's grievance about the lien amount does not qualify as a valid reason for filing a motion to remove the lien.
- If a nonresidential owner does not win a Verified Motion to Remove Lien, the court is likely to award attorney's fees to the claimant who defended the lien.
Bonds and Legal Actions
- Public construction projects valued over $50,000 require the General Contractor to provide a payment bond.
- Legal action against a payment bond surety for nonpayment must be initiated within one year from the date notice was sent to the surety.
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Description
Test your knowledge on the differences between liens under the Texas Constitution and Chapter 53 of the Texas Property Code. This quiz includes flashcards on who can lien a property and other related topics. Perfect for students studying Texas property laws.
