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We have a contract directly with the owner. What do we need to obtain from the owner to protect our lien rights?

TexasMechanics Lien
Anonymous Contractor

We have a contract directly with the owner. What do we need to obtain from the owner to protect our lien rights?

1 reply

Attorney at House Perron & House Pllc
| 52 reviews
Oct 11, 2021

The answer to this depends on whether the homeowner is utilizing the property as his/her homestead, as the homestead requirements are much more onerous than the standard lien requirements. 

Article XVI, Section 50(a) of the Texas Constitution and the Texas Property Code provide additional protection for homestead properties against both constitutional and statutory liens. 

Generally, if you're dealing with married folks, both spouses must sign a written contract. Secondly, the contract cannot be executed before the fifth day after the owner applies for credit necessary to fund the work or materials (if the owner does so at all). Third, the contract must be rescindable up to three days afte execution. Fourth, the contract must be executed by the owner and spouse only at the office of a thirdy-party lender, an attorney, or a title company. 

The fourth requirement is the single largest issue for most homestead liens, but any of the requirements can derail a lien on homestead property.

This is very much a summary of a very dense legal topic, and is not intended to be a global checklist for lien perfection.

Obvisouly, this issue is complex. I alwasy recommend retianter a good construction attorney to handle issues as they come up.

Very best,

Ben House

281-762-1377

ben@houseperron.com

NOTICE: The advice provided above is of a general nature only and should not be relied upon under specific circumstances without first retaining an attorney
and having your legal issues reviewed in detail. Ben House and the law firm of House Perron & House PLLC are not agents, contractors, or employSee More...
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