if I give permission for owners to pay two party checks from owners on project I'm in the process of liening will the disrupt or void my lien? owners are saying they will pay supplies and labors directly inside of me but requesting permission to give two party check.
A joint check or two-party check is a good thing, unless the subcontractor or supplier is not entitled to the money. The purpose of the game is to collect the contract balance, not block it with a mechanic's lien.
If you contracted directly with the owner, you are an original contractor under Chapter 53 of the Texas Property Code (the chapter which governs the propriety of mechanic's liens). An original contactor is not required to provide an intent to lien. An original contractor also has lien rights under the Texas Constitution.
Retain a construction attorney to evaluate your legal situation and to provide advice.
Good luck.
Are you an original contractor (a contractor with a contract directly with the owner) or a subcontractor or what?
Hello,
The Property Owner is asking you if they can cause you problems. To clear a 2 party check, you need both parties to sign. If your subs up and run away that day or up and leave you, there's going to be a problem getting them in one spot to have them sign. What the Property Owner is trying to do is make sure the subs are paid. Lien waivers work the same.
Since you are the orginal/General Contractor, you do not mess up anything related to your notice of intent as you were never required to send one. If the Property Owner pays you, that amount is reduce from your overall lien. Trust me when I say you would rather have the money than enforce a lien in court.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com
thank you! This processs is very confusing, being it is the first time we have used these rights. With the owners acting as General Contractor ( our contract is dirctley with them) but now it seem they have changed roles ( they have a consulting GC Grey Boulder ) Grey Boulder is doing all their comunicating through call, text some email. I feel we were wrongfuly terminanated. We have sent our intent to lien through levelset as well as had all our suppliers send theirs. Owners have sent out some two party checks but with our Labor guy they want us to send a conditional on his behalf. Shouldn't that come from him because by doing that he is stating once paid he (our sub) will not lien? If we send it couldnt that void our lien rights to get what is owed to us? should we hirer a construction lawyer to go over case or just wait and see what they do next?
Thank you for your help,
Missy
You are correct that you need a construction attorney to review your situation and to provide advice.
If the owners were acting as their own general contractors, then you would likely be an original contractor (assuming that you contracted with the owners), with no need for submission of intent to lien notices and with a right to file a Texas Constitutional lien (assuming that the property is not the owners' homestead).
You should consider preparing a letter to mail by certified mail to the owners to state the facts, and to indicate why you were wrongfully terminated, and to state your claim. Support your letter with invoices and photographs of your work. Make sure that your letter is professional and businesslike as it may be evidence later.
Good luck.
For you to be a subcontractor, you would have to subcontract with another contractor. If you contracted directly with the owner, then you are not a subcontractor, you would be a prime contractor or an original contractor under the Texas Property Code. Being an original contractor is a good thing and has benefits.