Construction Liens in Texas: Everything You Need to Know

Introduction to Construction Liens in Texas

Construction liens, also known as mechanic’s liens, are essential tools for contractors, subcontractors, and suppliers to ensure payment for labor or materials provided to a construction project. Texas has a unique and detailed legal framework for construction liens governed primarily by Chapter 53 of the Texas Property Code. These laws balance the rights of property owners with those of construction professionals.

Important Disclaimer: The information provided here is for educational purposes only. Non-attorneys or even attorneys who do not regularly practice construction law are strongly encouraged to seek the services of an experienced attorney. Texas law is unforgiving when it comes to missed deadlines or improper notices, and even minor errors can result in a loss of lien rights.

Who Can File a Construction Lien in Texas?

Construction liens are available to various parties involved in construction, including:

  • Original Contractors: Those contracting directly with the property owner.
  • Subcontractors and Suppliers: Those working under or supplying to original contractors or other subcontractors.
  • Specialty Trades: Architects, engineers, surveyors, and landscapers under specific contracts.

Key Categories of Claimants

Original Contractors: No pre-lien notice is required; the lien affidavit is the primary step.

Subcontractors and Suppliers: Must comply with detailed notice and filing requirements to secure lien rights.

Steps to Perfect a Construction Lien

1. Sending the Required Notices

The notice requirements depend on whether the claimant is an original contractor or a subcontractor. Notices must be sent:

Subcontractors/Suppliers: Notify the property owner and original contractor of unpaid amounts by the 15th day of the third month after work or materials were provided.

2. Filing a Lien Affidavit

A lien affidavit must:

Be filed in the county where the project is located.

Include specific details such as the amount owed, description of the property, and the nature of the labor or materials provided.

Be filed no later than the 15th day of the fourth month after the work was completed or materials were delivered.

3. Sending Notice of the Filed Lien

After filing, the claimant must send a copy of the lien affidavit to the property owner within five days.

Best Practices

Timeliness: Strict adherence to deadlines is crucial.

Documentation: Maintain detailed records of contracts, invoices, and communications.

Deadlines for Filing Construction Liens in Texas

General Timeline for Non-Residential Projects

Subcontractors: File the lien affidavit by the 15th day of the fourth month after work or materials were provided.

Original Contractors: File within the same timeframe without pre-lien notice.

Residential Projects

Additional disclosure and affidavit requirements apply, including timelines specific to homestead properties.

Common Challenges with Construction Liens

Fraudulent Liens

Under Texas Civil Practice and Remedies Code Chapter 12, filing a fraudulent lien can lead to penalties, including $10,000 in damages.

Trapping Funds

Property owners may “trap” funds due to the original contractor to secure payment for subcontractors and suppliers. Proper and timely notices are required to invoke this protection.

Deadlines Enforcement

Texas courts strictly enforce lien deadlines, making compliance with statutory timelines critical.

Judicial Foreclosure of Construction Liens

A construction lien can only be enforced through a judicial foreclosure. This involves:

  • Filing a lawsuit in a court of competent jurisdiction.
  • Demonstrating a valid lien and unpaid debt.
  • Court orders for property sale to satisfy the lien.
  • Jurisdiction and Venue
  • District Courts: Handle most lien foreclosures.
  • Venue: File in the county where the property is located.

Special Considerations for Construction Liens

Constitutional Liens

Original contractors have constitutional lien rights under Article XVI, Section 37 of the Texas Constitution, offering some protection without filing. However, filing a statutory lien affidavit is still recommended for maximum enforceability.

Leased Properties

Liens may attach to leasehold interests or leasehold improvements, but they must specify that the lien is limited to the leasehold interest.

Removing or Contesting a Construction Lien

Summary Motion to Remove a Lien

Under Section 53.160, property owners can file a verified motion to challenge invalid liens. The claimant bears the burden of proving lien validity during the hearing.

Bonding Around a Lien

Owners or contractors can file a bond to indemnify against a lien, effectively removing the lien from the property while the dispute is resolved.

Construction liens are powerful tools but require strict compliance with Texas law. Whether you are a contractor seeking payment or a property owner responding to a lien claim, understanding the requirements and deadlines is essential.

For personalized legal guidance, contact us immediately!