What is a preliminary lien notice and when is it necessary?

A preliminary lien notice is a document used in construction law in Texas. This document is necessary when a contractor, subcontractor, or materials supplier is not paid in full for their services. The preliminary lien notice is used to protect the unpaid party’s right to file a mechanics lien against the property that was worked on. This document notifies the property owner that a lien will be filed unless payment is made in full. In Texas, the notice must be filed at least sixty days in advance of the mechanics lien. This document has to include specific information such as the names of the parties involved, the amount owed, and a legal description of the property. It also must be sent through certified mail or similar means. The preliminary lien notice serves as a warning to the property owner that the payment in full must be made in order to avoid the mechanics lien. If payment is not made in full then the mechanics lien can be placed on the property and its title. This could prevent the sale or transfer of the property until the lien is satisfied. For this reason, it is important for all parties involved in construction projects in Texas to keep records of payments and to make sure that everyone is paid in full.

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