Texas Mechanic’s and Materialmen’s Liens on Real Estate

Categories: Mortgages and Liens

Just as a home mortgage lender keeps an interest in a home in order to secure payment on the mortgage, the law provides a method for contractors and subcontractors to keep an interest, or a mechanic’s lien, in the property they build or improve in order to secure payment for their services and materials. If the owner of the property fails to pay the debt, the contractor or subcontractor may then enforce this lien by obtaining a court judgment ordering foreclosure and sale of the property to pay the debt. By following the procedures to perfect this lien, or to give notice to other creditors of the lien, a contractor or subcontractor may also have preference under the law in the event of foreclosure on the property by other creditors, or in bankruptcy.

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