(May 10, 2010): Whenever a company contracts to provide construction work for a city on public property, the company should always check the state law that governs the city in regards to liens against the land where the public property is located. And the city should always make sure of what rights it has as a governmental unit in regards to liens against land.
In Texas, section 43.002 of the Texas Property Code protects public lands from attachment, execution, and forced sale. Whenever a city authorizes construction work on public property, the contractor, subcontractors, and material suppliers cannot impose a lien on that land.
What if there is a lien that existed against land before purchase by a city? Again state law should be checked to determine whether or not liens that are filed against private land later purchased by a city become invalid or remain enforceable. In Texas, the general rule is that liens that existed on private land later purchased by a city are invalid.
Both companies and cities should always have their attorney review lien rights whenever there is proposed construction on public property or when there is a proposed purchase of private land by a city.
Should you have any questions regarding these issues, don?t hesitate to contact us. For a complementary consultation, you may call Robert W. Liles or one of our other attorneys at 1 (800) 475-1906.