Dealing with a mechanic lien in Texas doesn’t have to be a hassle. Using a surety bond can sidestep a lot of troubles that mechanic liens cause. Working with a surety bond expert provides an easy way to take care of mechanic lien Texas situations quickly.
A mechanic’s lien is a lien on a property prohibiting the sale or transfer of ownership of the property. Often times, a lien is placed on property as part of a payment dispute. Contractors deal with this issue often when attempting to collect on bills for work completed or materials bought.
The Texas Bar explains Texas mechanic lien requirements in further detail on their site. In short, a lien is a legally binding hold on property until the dispute between plaintiff and defendant are cleared up.
As one can imagine, a lien can cause serious problems for individuals and businesses. For individuals still making mortgage payments, a lien may cause the mortgage holder to increase payments or apply fines. Liens can also lead to tax issues. One of the fastest ways to remove a mechanic lien in Texas is with a surety bond.
Using a surety bond allows for the alleged debt to be covered while removing the lien. Posting a mechanic lien Texas bond is not an admission of guilt. In short, the surety bond simply takes the place of the lien. A transfer of lien bond is proof to a Texas judge that the issue is being handled seriously. It doesn’t take long for a judge to rule on the lien and accept the surety bond.
One way to avoid a lien is to make a contractor and/or subcontractor sign a lien waiver. Some contractors make subcontractors sign such a waiver. The waiver rules out the threat of a lien. Meaning the owed party would have to seek other avenues to gain payment.
After a lien has been filed there may be ways to dispute it. Timing is one of the main reasons why liens are struck down. Mechanic lien Texas requirements include serving the lien within 5 days of filing the application. Judges in Texas make sure that this and other procedures are followed properly when determining the validity of a mechanic lien.
Have more mechanic lien Texas bond questions? Contact Jurisco today to speak with a Texas surety bond expert about mechanic lien bonds. Jurisco works to provide same-day service whenever possible, while offering low surety bond rates.