Texas Mechanics Lien Law is complicated so you may want to talk to a local attorney, or read Chaper 53 of the Texas Property Code yourself to confirm any details of the law. Texas is known to have difficult lien laws, so make sure you read everything carefully before you file!
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There are some caveats for a "residential project" in Texas in the Texas Property Code. A project is only deemed as residential if it fits the criteria. Here is the definition from Texas:
Even if you are the general contractor maybe the owner is holding as a second home or maybe an investment property. Its important to know the intention of the owner, or even start to request this information in your contracts to confirm. The rules are much less strict for commercial properties. So if you do not need to follow the residential rules, you will have an easier time.
The most difficult rules in Texas for filing mechanics liens are on properties that the owner lives in or intends to live in, this is called a homestead property. It has the strictest rules, and the ones we will outline below to make sure you follow the strictest standards for a pre lien notice and all of your other lien documents so you will not have an issue.
Again, since this article is how to put a lien on a house, we are assuming this qualifies as a residential property that you are working directly for the owner and the building is a single-family house, duplex, triplex, or quadruplex or a unit in a multiunit structure.
- You are a contractor, sub-contractor, supplier, or laborer on a residential project
- You have a written or oral agreement with the owner or contractor to perform work or supply materials
- The owner must have a written agreement with the Original Contractor setting the terms of the agreement and must be signed by both parties if the owner is married
- You have not been paid in full for your work or materials
- You have given proper notice (see below on proper notice)
- You are within the filing timeline (see below)
The last two steps are the most critical ones to follow in order to ensure you comply with the law.
**Original Contractor - **there is no notice requirements prior to filing a lien
**Subcontractor **-You must send a notice to the owner and the original contractor informing them of an unpaid claim.
This notice for subcontractors has the following requirements:
- Must be sent via certified mail with return receipt requested, in person, or any traceable delivery method
- Notice is sent not later than the 15th day of the second month the labor or materials were provided
- Notice must be sent every month that the labor or materials were provided
Both original contractors and subcontractors must file their lien by the 15th day of the 3rd month after the work has been completed.
Texas Mechanic's Lien FAQ
- sworn statement of the lien claim amount
- name and last known address of the property owner
- statement of work performed or materials furnished
- name and last known address of the first tier contractor (if you were hired by a GC, and not the owner)
- property description "legally sufficient for identification"
- your mailing address and physcial address (if different)
- if you are not the original contractor dates you sent your pre lien notices
- a copy of the written contract
- The contract needs to be signed prior to doing any work or delivering materials
- Needs to be in at least 10 point font
- Needs to contain this exact language: "NOTICE: THIS IS NOT A LIEN. THIS IS ONLY AN AFFIDAVIT CLAIMING A LIEN."
- The contract cannot be signed by only one spouse if the owners are married
- The contract (if signed by the GC) explains that it is not that the GC gets paid, but anyone working on the construction project
- The contract must be filed in the Texas county that the construction project is taking place
- The contract must contain the exact statement below: