News | FWM Software

FOR IMMEDIATE RELEASE
Contact: Frank Moore – FWM Software
Phone: 530-622-1344
Email: fmoore@fwmsoftware.com

TEXAS NOTICES VIA LIEN WRITER™
Special Notice on Using Lien Writer™ for Texas Mechanics Lien Claims

[SACRAMENTO, CA, September 6, 2018] FWM Software, the creators of Lien Writer™, which allows users to do notices, releases and liens in all 50 states, 11 Canadian Provinces and all US Territories. The service also includes technical and customer support, changes in law updates and software improvement updates.

We have had some questions on the Texas Preliminary Notices that we felt should be addressed, especially for folks out of the State of Texas:

Unlike in all other USA States and Canadian Provinces, you send a Texas preliminary notice after the complete month you have done the work within, and for all billing notices within that month. For residential jobs you send this notice the following month (i.e., June job, July notice) and for a commercial job you send the notice two months after the job month (i.e., June job, August notice). All notices must be sent by the 15th of the month. You are supposed to send a 1st Notice to Contractor followed by a 2nd Notice to Owner or Contractor, followed in the 3d month with a Notice of Intent to File a Lien a Bond Claim (Lien Warning Notice), and then file your Mechanic’s Lien. Mind you, for each month on the job you send a new notice for every month you do work on this basis (i.e., July notice, follow with an August or September 1st notice and then a 2nd notice in September or October, etc.). You could have several original notices going out on a single job.

Now, I am aware that your customers sometimes have a job done for them and then plan to pay their prime contractor almost immediately, sometime before you have even had a chance to send a bill, so it seems that, for Texas, these time limits are excessive. Well, if this situation comes up, immediately make demand on your customer, the prime contractor and the owner, then file your Mechanic’s Lien and tie up the closing of the project. If this matter goes to court the court will support you. The plan of the Texas notice law was for long term jobs, but situations change, and you have a right to protect yourself.

This is why the Texas notice (the sole notice in the USA) has a balance due statement instead of a estimated amount statement. You know what is due you for the noticed month when you send your notice.

Confusing? This is why you use Lien Writer™. Send the notices out and you are protected.

Read the section on Texas law in the Lien Writer® Help file. Also, put your Texas jobs in the computer as they come up (yes, I am aware it could be a waste of our time if your customer does pay you), but do not send the notices until the appropriate month for the notice comes up and always send the notice before the 15th of the month. When the 15th of any month is coming up (and you can mail between the 1st and 15th, but most folks due it on or just before the 15th), use the Lien Writer™ option in Notices and Mail, then Mark Texas Preliminary Notices to Print each for month and it will update the notices for mailing. After the three months are up and you have not been paid, always follow with a Mechanic’s Lien. Failure to send your notice can negate your right to make claim against the Owner and the General Contractor.

Your first duty on any job you do is to get paid.

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If you would like more information about this topic, please call Mark McGee at 530-622-1344, or email mark@fwmsoftware.com.