Texas Commercial Law Firm
Foreclosure
An improvement is “removable” if it can be removed without material injury to itself or to the realty to which it is attached. Therefore, items normally associated with becoming part of the land once installed, such as fixtures, remain subject to M&M liens so long as they fit the removable criteria. Texas cases have variously found carpeting, appliances, air conditioning and heating components, smoke detectors, burglar alarms, light fixtures, door locks, doors and door trim, and windows to be removable. Items held not to be removable once installed include brick veneer, roofing tiles and window frames. Surprisingly, an M&M lien claimant is not necessarily limited to asserting his rights against removable items he installed. Some cases and commentators, as well as the controlling statute itself, suggest that a claimant may be entitled to “self-help” even as to removables supplied by others.
10. Corporate franchise taxes. Corporate mortgagors are subject to franchise tax liens for unpaid franchise taxes. Tex. Tax Code Ann. §171.357. To determine if there are franchise tax liens, the title company should be instructed to search the county records where the corporation has its principal place of business as well as where the property is located. Id §171.357(a) et seq. A properly recorded franchise tax lien is superior to a deed of trust lien regardless of order of recording. Id §171.356.
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