Legal Question in Construction Law in Texas
Notified of Debt 1 yr after completion of Pool
In May'03 I contracted to have a residential pool built. It was financed via loan-with progress checks made out jointly to myself and the contractor. One of these checks was for landscaping, which the contractor signed over to me and I cashed in May.
The pool was completed early July'03. I signed over the last of the checks and was told we were done. During the summer of 2004, an inspection guy showed up-don't know why-I had no idea there was one pending. Then the company contacted me, stating that the final inspection had triggered a review of my account and I owed 1150-which they forgot to retain from the landscape check.On 11/12/04 I received a certified letter stating ''Failure to properly pay the amount and sum due under terms of the contract shall result in the filing of the appropriate mechanics lien.''
Due to significant medical issues that arose at the time the construction started (and continued through April'04), I am completely disorganized and am now scrambling to figure out how to prove I paid them everything I owe.I had 3 constr mngers(the company had a retention problem) and I suppose its possible some money got 'lost'.
Isn't there a time limit that prohibits them from doing this? What are my options?
1 Answer from Attorneys
Re: Notified of Debt 1 yr after completion of Pool
The retention issue sounds as bogus as a three-dollar bill. Moreover, the time is well past for them to place a lien on your property. However, if the contract was properly drawn, and filed before any work was done, they may be in position to move to foreclose upon their already-filed lien.
You can ask your bank, or lender, to run copies of all checks written to the contractors so you can see who's been paid. They will charge you for the service, but if it forestalls a lawsuit, you'd be ahead of the game.
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