# Texas Mechanic's Lien — Quick Reference

## Authority: Texas Property Code Chapter 53

## Who Can File
- **Original Contractor (GC):** Direct contract with owner — no pre-lien notice required
- **Subcontractor:** Hired by GC — must send pre-lien notice within 15 days
- **Material Supplier:** Must send notice if not under direct contract with owner
- **Laborer:** Eligible with simplified notice
- **Design Professional:** Architect/engineer — written notice required if not under direct contract

## Who CANNOT File
- Unlicensed contractors (Texas Occupations Code Ch. 1301/1305/1306)
- Remote suppliers (suppliers to suppliers — too far from the project)
- Finance-only parties (lenders, banks with no construction involvement)

## Critical Deadlines
| Role | File Lien By | Statute |
|------|-------------|---------|
| **GC** | 15th day of 4th month after month of completion | § 53.052 |
| **Sub/Supplier** | 15th day of 3rd month after month of completion | § 53.052 |
| **Foreclosure suit** | Within 1 year of last day to file | § 53.158 |

All deadlines count from MONTH of project completion, not day. Example: completion in March → GC deadline is July 15.

## Pre-Lien Notices
| Scenario | Deadline | Consequence if Missed |
|----------|----------|----------------------|
| Sub notice to owner (commercial) | Within 15 days of first furnishing | Lien limited to retainage |
| Sub monthly notice (residential) | By 15th of 2nd month after work month | Complete loss of lien rights |
| Notice of filed affidavit | Within 5 days of filing | Lien invalid against owner |
| Homestead written contract | Before work, signed by both spouses | Lien void |

## Homestead
- Art. XVI § 50 of Texas Constitution
- Written contract required, signed by both spouses
- Lien must state: "This is a lien on homestead"
- 3-year redemption period after foreclosure sale
- Avoid for claims under $25K

## No Lien on Public Projects
Use bond claims instead:
- **McGarr Act** (TX Gov't Code Ch. 2253): 90-day notice, 1-year suit
- **Miller Act** (40 USC §§ 3131–3134): federal projects

## FDCPA / DRE Restrictions
- **DRE cannot file liens directly** — UPL + FDCPA violation
- DRE can send pre-lien notices (factual, template-based, with Mini-Miranda)
- Actual lien filing requires licensed Texas construction attorney
- Wrongful lien damages: TX Prop. Code § 53.152 — actual + fees + up to $10K exemplary

## Tier 2.5 Workflow (DRE Recovery Progression)
1. **Phase A (DRE-led):** Pre-lien notice via certified mail to owner + GC + lender
2. **Phase B (Attorney-led):** Refer to construction attorney for lien affidavit filing
3. **Phase C (Monitor):** If no payment, escalate to foreclosure if claim ≥ $10K

## Minimum Thresholds
- Pre-lien notice: **$1,000**
- Lien filing: **$2,500**
- Foreclosure: **$10,000**

## Key Cases
| Case | Holding |
|------|---------|
| *First Nat'l Bank v. Whirlpool Corp.*, 517 S.W.2d 262 | Relation-back: lien priority dates to visible commencement of work |
| *McCollough v. Johnson, Rodenburg & Lauinger*, 637 F.3d 939 | FDCPA applies to time-barred debt threats |
| *H&M Steel, LLC v. HRR Asset Mgmt*, 2015 | Strict enforcement of lien deadlines |

**Full report:** `/root/Texas_Mechanics_Lien_Research_Report.md`
**Compliance manual section:** `DRE_Compliance_Manual.md` § 22 — Mechanic's Lien & Bond Claims (Tier 2.5)
