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Tax, SDIRAs & Cost Segregation

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Matt Heerwald
  • Investor
  • Austin, TX
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Licensed TX Attorney for Help w/ Lien Waiver

Matt Heerwald
  • Investor
  • Austin, TX
Posted Sep 26 2019, 19:50

Looking to get connected for some quick legal support on a property we're renovating in San Antonio. It's unfortunately a very short timeline: we're meeting with our electric contractor tomorrow at 2:30p to hopefully terminate the relationship as amicably as possible and have him sign a change order that reflects that, as well as a conditional lien waiver (as we'll be paying with a check). 

Need to make sure we do all this appropriately, according to Texas law! As quick background, this contractor has caused around 2 weeks of delays plus various other damages. We do not believe we should pay him the remaining $2,900 in full and have been working to collect documentation to support that (honestly, with the issues he's caused, it looks like he should owe us). Again, hoping to resolve this with little conflict tomorrow, and want to cover all bases from a legal standpoint. 

If you're interested and able to help on this tight timeline, please feel free to leave your contact info or DM us so we can get in touch!

Many thanks, 

Mary and Matt

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied Sep 26 2019, 19:54

You should be able google up the state version of the final lien waiver in your state statutes.  At least in FL you can, as the lien are very specific and they likely have a waiver with the proper required language.

Getting him to sign it for a $2900 deduct of course could be an issue.  Unless your contract specifically spelled this out, it will be tough to justify/enforce.

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Matt Heerwald
  • Investor
  • Austin, TX
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Matt Heerwald
  • Investor
  • Austin, TX
Replied Sep 26 2019, 20:08

Update: 

We're planning to use this conditional lien waiver form from Texas Construction Assn, but it looks like Texas may have recently changed laws regarding lien waiver language. So we just want to make sure we're getting all this right and are looking to, at a minimum, have a conversation + form a new attorney relationship. 

https://www.texcon.org/images/texcon/pdf/Final_Payment_-_Conditional_Waiver__Release.pdf

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Replied Sep 26 2019, 20:15

I am no expert, but at $2900, would it not be cheaper to pay him in full as opposed to hiring an attorney

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Taylor Angel
  • Attorney
  • Round Rock, TX
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Taylor Angel
  • Attorney
  • Round Rock, TX
Replied Oct 3 2019, 11:26

@Matt Heerwald

I don’t see anything wrong with the waiver template you chose. Texas Property Code 53.284 has several templates you can use, and TPC 53.281 requires that it just “substantially comply” with one of those forms.