How do you know if a Homeowner is Homestead in Texas?

1 year ago

Homeowner did not pay for roof replacement on an insurance claim. I placed a statutory lien on my own. His house is currently for sale.

Chief Legal Officer Levelset

Texas has offered strict protections to a person’s “homestead” throughout history, both with respect to mechanics liens and with respect to other debts and judgments. The general rule in Texas is that a property that is resided upon by the owner is his/her homestead. Accordingly, it is best practice for contractors in Texas to treat all owner-occupied residential property as a homestead for mechanics lien purposes.

Note, however, that a property owner is limited to a single homestead, so a property owner with multiple residences cannot have the heightened homestead protections for each.

Additionally, while a statutory lien may not be available against a homestead when the necessary prerequisite steps have not been taken (contract signed by both spouses and recorded with the county), it is less clear whether a “constitutional lien” is similarly prohibited. A lawsuit against the property owner who owes for the work may be an appropriate avenue to recovery – and in the lawsuit multiple causes of action may be alleged (breach of contract, the foreclosure of the statutory lien or constitutional lien, etc.).

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