D pumps, siphons, and windmills or other machinery or apparatuses used for raising water for stock, domestic use, or irrigation; and.
E planting orchard trees, grubbing out orchards and replacing trees, and pruning of orchard trees. A the material, machinery, fixtures, or tools incorporated into the work, consumed in the direct prosecution of the work, or ordered and delivered for incorporation or consumption;. B rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct prosecution of the work at the site of the construction or repair; or.
C power, water, fuel, and lubricants consumed or ordered and delivered for consumption in the direct prosecution of the work.
The term does not include retainage under Subchapter E. A a house, building, structure, parking structure, physical appurtenance, pool, utility, railroad, well, storage facility, abutting sidewalks and streets, utilities in or on those sidewalks and streets, land reclaimed from overflow, and other fixtures or modifications to real property;. C machinery or apparatuses used for raising water or for supplying or storing water for stock, domestic use, or irrigation ;.
E a design, drawing, plan, plat, survey, or specification provided by a licensed architect, engineer, or surveyor. B a professional service used in the direct preparation for the work of a design, drawing, plan, plat, survey, or specification.
B rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct performance of the work at the site of the construction or repair; or.
C power, water, fuel, and lubricants consumed or ordered and delivered for consumption in the direct performance of the work. This subsection does not apply if the law requires receipt of the notice by the person to whom it is directed. B a levee or embankment to be erected for the reclamation of overflow land along a river or creek; or.
A lien for retainage is valid only for the amount specified to be retained in the contract, including any amendments to the contract, between the claimant and the original contractor or between the claimant and a subcontractor. Failure of the county clerk to properly record or index a filed affidavit does not invalidate the lien. The county clerk shall record the affidavit in records kept for that purpose and shall index and cross-index the affidavit in the names of the claimant, the original contractor, and the owner.
The affidavit may use any abbreviations or symbols customary in the trade. The notice must be sent:. B the undelivered specially fabricated materials would normally have been delivered; or.
B the undelivered specially fabricated materials would normally have been delivered. A notice under this subsection is not required for a lien to be valid. B files an affidavit claiming a lien not later than the earliest of:. B files an affidavit claiming a lien not later than the date required for filing an affidavit under the applicable provision of Section If the indebtedness is incurred by a person other than the original contractor, the claimant must also give notice within that time to the original contractor.
If notice is sent as provided by Section The withholding may be in addition to any reserved funds. Unless payment is made under Section Unless the claim is otherwise settled, discharged, indemnified against under Subchapter H or I, or determined to be invalid by a final judgment of a court, the owner shall retain the funds withheld until:.
The demand must give notice to the owner that all or part of the claim has accrued under Section The original contractor may give the owner written notice that the contractor intends to dispute the claim.
The original contractor must give the notice not later than the 30th day after the day he receives the copy of the demand. If the original contractor does not give the owner timely notice, he is considered to have assented to the demand and the owner shall pay the claim. The owner is liable for that amount in addition to any amount for which he is liable under Subchapter E. The owner is liable for that amount in addition to any amount for which the owner is liable under Subchapter E.
An offense under this section is a misdemeanor. A person may not receive community supervision for the offense. The retained funds secure the payment of artisans and mechanics who perform labor or service and the payment of other persons who furnish material, material and labor, or specially fabricated material for any contractor, subcontractor, agent, or receiver in the performance of the work.
The reserved funds secure the payment of artisans and mechanics who perform labor or service and the payment of other persons who furnish material, material and labor, or specially fabricated material for any contractor, subcontractor, agent, or receiver in the performance of the work. C the original contractor abandons performance under the original contract. The affidavit must contain:. The owner must furnish the copy to the person not later than the date the affidavit is filed or the 10th day after the date the request is received, whichever is later.
If the affidavit is filed after the 10th day after the date of completion, the date of completion for purposes of this subchapter and Section This subsection does not apply to a person to whom the affidavit was not sent as required by this section.
If the affidavit is filed after the 10th day after the date of completion, the date of completion for purposes of this subchapter is the date the affidavit is filed. The priority of a lien claimed by a person entitled to a lien under Section A lien created under Section That priority does not excuse the surety from paying any obligations that it may have under its payment bonds. An owner, the original contractor, or any person making the payment may request the release.
If the owner has settled with the original contractor in full, the owner is entitled to recover from the original contractor any amount paid for which the original contractor was originally liable. If the house, building, improvement, or any piece of railroad property is sold separately, the officer making the sale shall place the purchaser in possession.
The purchaser is entitled to a reasonable time after the date of purchase within which to remove the purchased property. If the improvement is sold separately from the land, the officer making the sale shall provide the purchaser a reasonable time after the date of purchase within which to remove and take possession of the purchased improvement.
The agreement must be recorded with the clerk of the same county where the lien was recorded and is considered to be notice of the extension to any subsequent purchaser. If requested, the claimant shall provide the estimated amount due for each calendar month in which the claimant has performed labor or furnished materials.
This subsection expires September 1, The motion must be verified and state the legal and factual basis for objecting to the validity or enforceability of the claim or lien. The motion may be accompanied by supporting affidavits. B the owner received a notice of the claim as required by this chapter;. B the affidavit claiming a lien failed to contain the notice as required by Section C the notice of the claim failed to include the statement required by Section The claimant and any other party that has appeared in the proceeding must be notified by at least 21 days before the date of the hearing on the motion.
A motion may not be heard before the 21st day after the date the claimant answers or appears in the proceeding. If the court determines that the movant is not entitled to remove the lien, the court shall enter an order denying the motion. If the court determines that the movant is entitled to remove the lien, the court shall enter an order removing the lien claimed in the lien affidavit.
The claimant and any other party that has appeared in the proceeding must be notified by at least 30 days before the date of the hearing on the motion.
A motion may not be heard before the 30th day after the date the claimant answers or appears in the proceeding. The claimant must be allowed expedited discovery regarding information relevant to the issues listed under Subsection b.
The sum may not exceed the amount of the lien claim. If the court fails to set the amount of the security required, the amount required is the amount of the lien claim. Any interest accrued on the deposit amount is a part of the deposit. A no bond or deposit in lieu of the bond was filed within 30 days after the date the order was entered by the court; and. B no order staying the order to remove the lien was entered by the court.
The removal of the lien does not constitute a release of the liability of the owner, if any, to the claimant. B a corporate surety authorized and admitted to do business under the law in this state and licensed by this state to execute the bond as surety, subject to Section 1, Chapter 87, Acts of the 56th Legislature, Regular Session, Article 7. Each named obligee or assignee of an obligee may maintain a separate suit on the bond in any court of jurisdiction in the county in which the real property is located.
B a corporate surety authorized and admitted to do business in this state and licensed by this state to execute bonds as surety, subject to Section 1, Chapter 87, Acts of the 56th Legislature, Regular Session, Article 7. A the name, mailing address, physical address, and telephone number, including the area code, of the surety company to which any notice of claim should be sent; or.
B the toll-free telephone number maintained by the Texas Department of Insurance under Subchapter B, Chapter , Insurance Code, and a statement that the address of the surety company to which any notice of claim should be sent may be obtained from the Texas Department of Insurance by calling the toll-free telephone number. A memorandum of the contract or a copy of the contract may be substituted for the original.
If the bond is not recorded at the time the lien is filed, the claimant must sue on the bond within two years following perfection of his claim. If valid claims against the bond exceed the penal sum of the bond, each claimant is entitled to a pro rata share of the penal sum. If the property that is the subject of the lien is a homestead, the notice must also comply with Section The county clerk shall record the contract in records kept for that purpose.
In addition, except for the required 10 percent retainage, you are not liable to a subcontractor or supplier for any amount paid to your contractor before you received written notice of the claim. In addition, except for the required 10 percent reservation , you are not liable to a subcontractor or supplier for any amount paid to your contractor before you received written notice of the claim.
You are about to enter into a transaction to build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this brief overview of some of your rights, responsibilities, and risks in this transaction. Your contractor may not require you to convey your real property to your contractor as a condition to the agreement for the construction of improvements on your property. Before you enter into your agreement for the construction of improvements to your real property, make sure that you have investigated your contractor.
Obtain and verify references from other people who have used the contractor for the type and size of construction project on your property. Make sure that you have a written agreement with your contractor that includes: 1 a description of the work the contractor is to perform; 2 the required or estimated time for completion of the work; 3 the cost of the work or how the cost will be determined; and.
If your contractor made a promise, warranty, or representation to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified in the written agreement.
An oral promise that is not included in the written agreement may not be enforceable under Texas law. Do not sign any document before you have read and understood it. Take your time in reviewing documents. If you borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished to you for review at least one business day before the closing.
Do not waive this requirement unless a bona fide emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney review any documents. If you have any question about the meaning of a document, consult an attorney.
Before construction commences, your contractor is required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided. Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this information.
Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes. These inspections are not intended as quality control inspections. Quality control is a matter for you and your contractor.
To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress. If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan. Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds.
Review these statements and make sure that the money is being properly disbursed. Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier.
To avoid liability, you should take the following actions:. If your lender is disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and instruct the lender to withhold payment in the amount of the claim stated in the notice.
If you continue to pay the contractor after receiving the written notice without withholding the amount of the claim, you may be liable and your property may be subject to a lien for the amount you failed to withhold. Not all claims are valid. The notice and the affidavit must contain certain information. All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in full before receiving a notice of a claim and have fully complied with the law regarding statutory retainage, you may not be liable for that claim.
Accordingly, you should consult your attorney when you receive a written notice of a claim to determine the true extent of your liability or potential liability for that claim. When you receive a notice of claim, do not release withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or your lender that your contractor furnish you with an affidavit stating that all bills have been paid.
Under Texas law, on final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in the amount of the unpaid bill until you receive a waiver of lien or release from that subcontractor or supplier. You may be able to obtain a title insurance policy to insure that the title to your property and the existing improvements on your property are free from liens claimed by subcontractors and suppliers.
Use the helpful Tier 1 Subcontractor section in our Lien Requirements chart for easy reference on filing requirements.
Important: if you are a subcontractor working for another subcontractor instead of the general contractor, the filing deadlines are different. Refer to Tier 2 Lien Requirements for more information.
If so, you are clear to move forward. Once you have collected all the necessary information, you can move forward and use our Texas Easy Lien online system to complete your affidavit and move forward with online filing options. Both options require you to send copies of the documents to the property owner and, if it is the case, the general contractor to their last known mailing address via certified mail return receipt requested. One mistake can cause you to miss a critical filing deadline.
You can read a quick review of the process on the Texas Bar website. However, there is an alternative to doing it yourself or paying an attorney. Securing your lien rights mean you have a claim on the property in case payment issues arise.
With the mechanics lien, you are in the best position to recoup on what you put in a construction project. To secure your lien rights in TX, sending preliminary notices—also called pre-liens, notice of intent to lien, and monthly preliminary notices—is crucial.
The statutory rules on which parties are entitled to file a mechanics lien are fairly general, and there are also a few key things that you must note:. Yes, they do. According to Sec. Yes, as stated in Sec.
Parties who furnish labor or materials for the demolition or a real property may file a mechanics lien. Not necessarily.
Pre-lien notices are very important in securing your right to file a mechanics lien. Failing to file the required notices will render your mechanics lien null and void. Sometimes pre-lien notices can also help you get paid without having to go through the mechanics lien process.
Property owners and general contractors in large-scale projects may lose track of which parties still need payment, and sending them a notice can catch their attention and get them to pay you right away.
It is highly recommended that you pay keen attention to the deadlines and requirements that are related not just to the actual mechanics, but most especially to the notices that you have to serve before you file a lien claim. An exception to the non-requirement may occur if a contractor is hired to provide specially fabricated materials to a project. These fabricated materials may be something that is applicable only to the project in question and is reasonably unsuitable for use in any other construction.
In this case, the contractor will have to submit a notice to the owner to protect their lien rights. The notice must be handed to the owner before the 15th day of the second month following the month in which the contractor receives and accepts the order. If, say, that the order was received in January, the notice must be handed to the owner by March 15th.
The notice must also include 1 a statement that the order has been received and accepted, and 2 the price of the material to be fabricated. Note that the material does not have to be delivered and incorporated into the project before this notice can be sent. If you are a first-tier subcontractor or material supplier that is working on a non-residential project, you are required to submit a written notice to the property owner and to the general contractor.
The notice must be handed no later than the 15th day of the third month after all or part of the labor or materials was furnished. If, say, that you worked on a project in January, you are required to submit a notice to the owner and the general contractor no later than April 15th. If you are working on a residential project , this deadline is reduced by a month.
You will be required to submit the notice no later than the 15th day of the second month following the month in which you provided all or part of the labor or materials. So if you worked in January, the deadline for the notice is on March 15th. So you essentially have to submit two notices, first to the general contractor, and second to the general contractor and the property owner.
Keep in mind that these notice requirements apply for each month that you are working on the project, so it is in your best interest to stay on top of the deadlines for filing these notices. If you are working on a homestead property, there are special rules in Texas with which you have to comply. To protect your lien rights when working on a homestead, you must have a written contract with the property owner that outlines the agreement. The written contract must fulfill the following requirements, according to Sec.
The county clerk shall record the contract in records kept for that purpose. Generally speaking, most construction participants are not allowed to file a Texas mechanics lien unless they serve the monthly preliminary notices on time.
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