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Lien Waiver vs All Bills Paid Affidavit

Texas
Anonymous Contractor

I am having a new home build. My builder was lying to me, telling me all bills were paid. I found out they were not. I asked for copies of proof of payment. He put me off for 30 days. Now he claims all are paid. I requested he provide lien waivers from each subcontractor and supplier and he refused to provide them. I asked subcontractors directly and they refuse to provide financial info with me. Is there any Texas Law, Code, or Regulation that requires he provide lien waivers at my request?

2 replies

Anonymous Contractor
Question Author
May 1, 2021
§53.283: A person may not require a claimant or potential claimant to execute an unconditional waiver and release for a progress payment or final payment amount unless the claimant or potential claimant received payment in that amount in good and sufficient funds. The builder paid in full the subcontractor. Can I, the home owner, require the subcontractor to sign the appropriate Texas lien waiver?
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Attorney at The Erikson Firm, A Professional Corporation
| 150 reviews
May 1, 2021

Is your concern that subcontractors may file mechanic's liens against your property? Or is your concern that subcontractors may not honor warranty because they have not been paid? Or both?

If the work is for your your home, and the contract does not comply with the homestead lien contract provisions of Texas Property Code sections 53.254, et seq., then no contractor or subcontractor may file a valid mechanic's lien against your homestead.

If your contractor has breached your contract by failing to pay, then exercise the default remedies provisions in your contract, which should (if you had retained a construction attorney to prepare, or review and revise your contract) provide for a retention of payment until proof of payment for labor or materials.

Retain a construction attorney to evaluate your legal situation and to provide advice.

Good luck.

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