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)

Phase A (DRE-led): Pre-lien notice via certified mail to owner + GC + lender
Phase B (Attorney-led): Refer to construction attorney for lien affidavit filing
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)

3.3 KiB Raw Blame History Unescape Escape