71 lines
3.3 KiB
Markdown
71 lines
3.3 KiB
Markdown
# Texas Mechanic's Lien — Quick Reference
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## Authority: Texas Property Code Chapter 53
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## Who Can File
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- **Original Contractor (GC):** Direct contract with owner — no pre-lien notice required
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- **Subcontractor:** Hired by GC — must send pre-lien notice within 15 days
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- **Material Supplier:** Must send notice if not under direct contract with owner
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- **Laborer:** Eligible with simplified notice
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- **Design Professional:** Architect/engineer — written notice required if not under direct contract
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## Who CANNOT File
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- Unlicensed contractors (Texas Occupations Code Ch. 1301/1305/1306)
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- Remote suppliers (suppliers to suppliers — too far from the project)
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- Finance-only parties (lenders, banks with no construction involvement)
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## Critical Deadlines
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| Role | File Lien By | Statute |
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|------|-------------|---------|
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| **GC** | 15th day of 4th month after month of completion | § 53.052 |
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| **Sub/Supplier** | 15th day of 3rd month after month of completion | § 53.052 |
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| **Foreclosure suit** | Within 1 year of last day to file | § 53.158 |
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All deadlines count from MONTH of project completion, not day. Example: completion in March → GC deadline is July 15.
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## Pre-Lien Notices
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| Scenario | Deadline | Consequence if Missed |
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|----------|----------|----------------------|
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| Sub notice to owner (commercial) | Within 15 days of first furnishing | Lien limited to retainage |
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| Sub monthly notice (residential) | By 15th of 2nd month after work month | Complete loss of lien rights |
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| Notice of filed affidavit | Within 5 days of filing | Lien invalid against owner |
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| Homestead written contract | Before work, signed by both spouses | Lien void |
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## Homestead
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- Art. XVI § 50 of Texas Constitution
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- Written contract required, signed by both spouses
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- Lien must state: "This is a lien on homestead"
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- 3-year redemption period after foreclosure sale
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- Avoid for claims under $25K
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## No Lien on Public Projects
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Use bond claims instead:
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- **McGarr Act** (TX Gov't Code Ch. 2253): 90-day notice, 1-year suit
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- **Miller Act** (40 USC §§ 3131–3134): federal projects
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## FDCPA / DRE Restrictions
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- **DRE cannot file liens directly** — UPL + FDCPA violation
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- DRE can send pre-lien notices (factual, template-based, with Mini-Miranda)
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- Actual lien filing requires licensed Texas construction attorney
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- Wrongful lien damages: TX Prop. Code § 53.152 — actual + fees + up to $10K exemplary
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## Tier 2.5 Workflow (DRE Recovery Progression)
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1. **Phase A (DRE-led):** Pre-lien notice via certified mail to owner + GC + lender
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2. **Phase B (Attorney-led):** Refer to construction attorney for lien affidavit filing
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3. **Phase C (Monitor):** If no payment, escalate to foreclosure if claim ≥ $10K
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## Minimum Thresholds
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- Pre-lien notice: **$1,000**
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- Lien filing: **$2,500**
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- Foreclosure: **$10,000**
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## Key Cases
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| Case | Holding |
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|------|---------|
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| *First Nat'l Bank v. Whirlpool Corp.*, 517 S.W.2d 262 | Relation-back: lien priority dates to visible commencement of work |
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| *McCollough v. Johnson, Rodenburg & Lauinger*, 637 F.3d 939 | FDCPA applies to time-barred debt threats |
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| *H&M Steel, LLC v. HRR Asset Mgmt*, 2015 | Strict enforcement of lien deadlines |
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**Full report:** `/root/Texas_Mechanics_Lien_Research_Report.md`
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**Compliance manual section:** `DRE_Compliance_Manual.md` § 22 — Mechanic's Lien & Bond Claims (Tier 2.5)
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