If contractors and suppliers do not receive payment on a construction project in Texas, they have the option to file a mechanics lien to ensure they are compensated. A mechanics lien grants the unpaid party a legal interest in the property as collateral.
At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Illinois state-specific rules and regulations.
This page outlines the essential rules, requirements, and deadlines for filing a mechanics lien in Texas.
Key Takeaways
- Eligibility to File: Contractors, subcontractors, suppliers, and other construction participants in Texas can file mechanics liens if payments are not received for their work or materials.
- Deadline Requirements: Deadlines for filing mechanics liens in Texas vary based on project type (commercial or residential construction projects) and role (direct contractor or other claimants). Timely filing is crucial to maintain lien claim rights.
- Homestead Properties: Mechanics liens can be filed on homestead properties in Texas, but specific conditions must be met, including a written contract signed by both spouses (if married) and notification requirements to the property owner.
Who Can File a Texas Mechanics Lien?
In Texas, general contractors (GCs), subcontractors, material suppliers, specialty material fabricators, design professionals, and landscapers can file a mechanics lien if payment is not received.
Parties who contract directly with the property owner in Texas can file a constitutional lien, which has specific requirements but no notice or filing requirements.
Can I File a Mechanics Lien in Texas Without a Written Contract?
For original contracts entered into on or after January 1, 2022, Texas generally does not mandate that contracts be in writing for lien protection eligibility. However, prime contractors working on homestead properties must have a written contract with the property owner to secure lien rights.
For original contracts entered into before January 1, 2022, the same general rules apply. However, design professionals such as architects, engineers, and surveyors must have a written contract to file a Texas mechanics lien.
When Is the Deadline to File a Texas Mechanics Lien?
For original contracts entered into on or after January 1, 2022:
The deadline to file a mechanics lien Texas varies based on the project type and the claimant’s role:
- Commercial projects:
- Direct contractors must file their lien by the 15th day of the 4th month after the month their contract ended.
- Other claimants must file their lien by the 15th day of the 4th month after they last provided labor or materials or after they were supposed to deliver specially fabricated materials.
- Residential projects:
- Direct contractors must file their lien by the 15th day of the 3rd month after the month their contract ended.
- Other claimants must file their lien by the 15th day of the 3rd month after they last provided labor or materials or after they were supposed to deliver specially fabricated materials.
Note: If the 15th falls on a weekend or federal holiday, the deadline moves to the next business day.
For original contracts entered into before January 1, 2022, the same general rules apply. If the deadline falls on a weekend or federal holiday, it is extended to the previous business day.
Can a Mechanics Lien Be Filed on a Homestead in Texas?
Yes, contractors and suppliers can file a mechanics lien on a homestead in Texas, but they must fulfill additional requirements to maintain their lien rights.
To preserve lien rights on a project, the general contractor must furnish the homeowner with a written contract. This contract needs to be signed by both spouses (if married), executed before any work begins on the project, and recorded with the county clerk.
Furthermore, Texas mandates that claimants notify the property owner of their rights and obligations using precise language.
Does a Mechanics Lien in Texas Need to Include a Legal Property Description?
Navigating this requirement in Texas can be challenging. The state mandates that a lien statement must contain a property description that is “legally sufficient for identification.” Determining what meets this standard is intricate.
According to the Texas Supreme Court, a property description is adequate if it allows someone familiar with the area to identify the specific premises with reasonable certainty, to the exclusion of others.
While this principle is upheld by Texas courts, applying it practically can be complex. Omitting a legal description could leave the lien claimant uncertain about its adequacy until enforcement. It’s advisable, at minimum, to include a lot and block number along with the property address. Ideally, providing a comprehensive legal or metes and bounds description enhances clarity and compliance.
How to Protect Your Lien Rights in Texas?
In Texas, construction participants who contract directly with the property owner generally do not need to send a written notice to preserve their ability to file an effective mechanics lien. However, other parties involved in the project may need to send monthly notices to maintain their mechanics lien rights.
Unlike many states, Texas does not require a single preliminary notice at the project’s outset to retain lien rights. Instead, participants must send notices for each month they provided labor or materials but have not been paid.
For example, subcontractors or suppliers on lengthy projects experiencing slow or non-payment typically need to send multiple monthly notices. These notices are in addition to other required notifications, such as those for retainage or specially fabricated materials.
Note: As of 2022, a Notice of Specially Fabricated Materials is no longer required for projects beginning on or after January 1, 2022.
Additionally, second-tier subcontractors and suppliers (those contracting with parties other than the general contractor or prime contractor) may also need to send multiple notices for each unpaid month of labor or materials provided.
How to File Mechanics Lien in Texas?
Here are the 3 Steps to File a Mechanics Lien in Texas:
- Prepare the Texas “Affidavit of Lien” Form
Texas law specifies the exact form necessary to file a mechanics lien. Ensure you use a form that complies with the requirements of the county recorder where the property is located. Complete the lien form meticulously with accurate and thorough details.
- Record Your Lien with the Texas County Clerk
Take your completed Lien Affidavit to the county clerk’s office in the county where the property resides. Pay the required fee for recording the lien. This step officially establishes your mechanic’s lien against the property.
- Notify the Property Owner and General Contractor
Following the recording of your Texas mechanics lien, it is crucial to notify both the property owner and the general contractor promptly. Texas law mandates that claimants must serve notice to these parties within 5 days of filing the lien. This notification ensures all involved parties are aware of the lien’s existence and preserves your rights under Texas lien laws.
By following these steps diligently, you can effectively file and protect your mechanics lien in Texas, securing your right to payment for labor and materials provided on the project.
Why You Should Be Careful on Texas Homesteads: Liens Have Strict Requirements?
In Texas, mechanics lien laws provide broad protection for construction businesses while also enforcing strong protections for homeowners, particularly regarding their homestead properties.
A homestead in Texas typically refers to the property where the owner resides. Even for owners with multiple properties, only one can be designated as a homestead. Contractors should treat all owner-occupied residential properties as homesteads to comply with mechanics lien laws.
For construction projects on homestead property, specific criteria must be met to qualify for mechanics lien protection:
- Written Contract Requirements:
- The contract between the general contractor (GC), prime/original contractor, or subcontractor and the homeowner must be executed before any labor or materials are provided.
- If the homeowner is married, the contract must be signed by both spouses, regardless of property ownership.
- The contract must be filed with the county clerk of the county where the homestead is located.
- Implications for Subcontractors and Suppliers:
- Subcontractors’ and suppliers’ ability to file mechanics liens on homestead projects is contingent upon actions taken by the GC or prime/original contractor before work commences.
- They must rely on the GC’s adherence to contract requirements and filing procedures to secure their lien rights effectively.
Understanding and meeting these requirements is critical for contractors and subcontractors working on residential projects in Texas to protect their lien rights effectively and ensure compliance with state laws.
Get in touch
Understanding the duration and enforcement of a mechanics lien in Texas is crucial for securing your right to payment in the construction industry. A mechanics lien lasts for two years from the completion of work or delivery of materials, during which time you must take legal action to enforce it. Failing to do so can result in the loss of your lien rights and potential financial loss.
At CRM, we have been serving customers across the country with required reference documentation for lien claims since 1986. We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.
We would love to work with you and help you lower your risk and get paid fast!
