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Latest Mechanics Lien Law and News

Texas Claim of Lien–First the Preliminary Notices

As with most states, Texas requires a preliminary notice prior to recording a mechanic's lien. According to the legislature, there are specific reasons for this requirement. Essentially, this prevents the owner paying twice. A classic dilemma is when the owner pays the general but the money does not filter down to the subs and suppliers. A sub then files a Texas mechanic’s lien and demands the owner pay, which in this case would be paying double, by making the funds ...
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Mechanic’s Lien–Amending After Nonpayment

We are all familiar with the primary process of recording a mechanics lien after nonpayment of construction services. You go to the time and effort of recording same, negotiate with either the owner or the general contractor, and hopefully come to some kind of good faith settlement. In almost all cases, this is a substantial reduction in the overall amount due. But you basically take it as a cost of doing business and accept the reduction. But the other side ...
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Illinois Mechanic’s Lien–Use of Residential Preliminary Notices

Before recording an Illinois mechanic’s lien, subcontractors and suppliers on residential projects are required to serve what is called a “Subcontractor’s Notice to Owner (60-Day Notice)”. It applies only to owner occupied single-family residences and therefore excludes industrial or commercial projects. Who must use this notice? It applies to all contractors, subcontractors, laborers and material equipment suppliers who do not have a direct contract or privity with the owner of the project. Or alternatively, with the owner’s agent. Included within ...
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