Texas Liens: Essential Do’s and Don’ts for Construction Professionals

Texas lien law offers no leniency. Every notice, deadline, and filing requirement must be executed exactly as the statute dictates. Miss one step, and your lien claim can be invalidated, no matter how much labor or material you provided or how justified your position is.

For anyone furnishing labor or materials on Texas projects, mastering the lien process is not optional. It’s an essential part of doing business, ensuring compliance, and safeguarding the payments you’ve rightfully earned.

What This Guide Covers

This comprehensive guide will help Texas construction professionals understand how to properly navigate mechanics lien laws and protect their payment rights. You’ll learn:

• Who can file a mechanics lien in Texas and under what conditions

• What notices must be sent and when they are due

• Key deadlines under Chapter 53 of the Texas Property Code

• How to file and enforce a lien correctly to make it legally valid

• Common mistakes that can destroy a lien claim before it even starts

By the end, you’ll know exactly how to stay compliant and avoid costly missteps that can jeopardize your right to payment.

What Is a Texas Mechanics Lien?

A mechanics lien is a legal claim filed against real property to secure payment for labor, materials, or services provided for its improvement. Once recorded, the lien effectively attaches to the property, making it difficult for the owner to sell or refinance until the debt is resolved.

In Texas, lien rights are governed by Chapter 53 of the Property Code, one of the most technical and detailed statutes in the nation. Success depends on absolute precision in meeting deadlines, sending required notices, and providing the correct information.

The Essential Do’s of Texas Lien Law

1. Determine the Type of Project

Before you begin preparing notices or lien filings, determine what type of project you’re working on:

• Private projects (commercial or residential)

• State or local government projects

• Federal projects

Mechanics liens apply only to private work. For public jobs, you must file a payment bond claim instead, which follows different procedures and deadlines under the Texas Government Code or the federal Miller Act.

2. Send All Required Pre-Lien Notices on Time

For subcontractors and suppliers, sending monthly pre-lien notices (sometimes called fund trapping notices) is mandatory. These notices protect your right to file a lien later.

Here’s what to remember:

• You must send the notice by the 15th day of the second month following each month you performed work or delivered materials that remain unpaid.

• For residential projects, only a second-month notice is required.

• Notices must go to both the property owner and the original contractor by certified mail, return receipt requested.

These notices give the owner a chance to withhold sufficient funds to pay you. Missing this step means losing your lien rights entirely, no matter how valid your claim.

3. File the Lien Affidavit Before the Deadline

Once all required notices have been sent, you must file your lien affidavit with the county clerk in the county where the property is located. Timing is critical:

• Commercial projects: File by the 15th day of the fourth month after the last month you provided labor or materials.

• Residential projects: File by the 15th day of the third month after the last month of unpaid work.

Your affidavit must include:

• A proper legal property description

• The amount due and unpaid

• The names of all relevant parties (owner, contractor, claimant)

• A description of the labor or materials provided

Inaccurate or missing details can make the lien unenforceable.

4. Serve Copies of the Filed Lien Promptly

Filing your lien affidavit is not enough. Within five days after filing, you must send a copy of the recorded lien to both the property owner and the general contractor via certified mail.

Failing to send these copies can invalidate your lien, even if every other requirement was met. This is one of the most overlooked steps that leads to lost claims.

5. Keep Excellent Documentation

Strong documentation is the backbone of every successful lien claim. Keep copies of:

• Signed contracts and approved change orders

• Invoices and pay applications

• Delivery tickets and proof of materials

• Certified mail receipts for all notices

• Email or written correspondence about payments

When a dispute arises, these records prove both your compliance with the law and the amount you are owed.

6. Get Expert Help When You Need It

Even experienced professionals can make small mistakes that cost them their lien rights. Texas lien law is highly technical and often changes through legislative updates or court interpretations.

Working with a team that understands the process such as ours or an experienced construction attorney can save you from costly errors. Having professionals prepare and serve your notices and lien filings ensures your claim stands up under scrutiny.

The Critical Don’ts of Texas Lien Law

1. Don’t Miss a Deadline

There are no extensions or second chances. Texas courts strictly enforce lien deadlines, and missing even one day means your lien is invalid. Set calendar reminders, use automated systems, or partner with a service that tracks deadlines for you.

2. Don’t Assume Every Project Qualifies

You cannot file a lien on government-owned property or on some oil and gas projects governed by separate statutes. Always confirm who owns the property before filing. Filing on the wrong property type can waste time, money, and credibility.

3. Don’t Overstate Your Claim

Filing a lien for more than you are legitimately owed can have serious consequences. Texas law allows property owners to challenge and even seek damages for fraudulent or excessive liens. Only claim the actual unpaid amount you can prove with documentation.

4. Don’t Ignore Contract Clauses

Before you file a lien, review your contract carefully. Look for:

• Lien waiver provisions

• Pay-if-paid or pay-when-paid clauses

• Retainage provisions

These clauses can affect both your timing and your right to file. Understanding them early helps you avoid surprises when payment issues arise.

5. Don’t Let Your Lien Expire

Filing a lien secures your claim but does not get you paid automatically. If you still haven’t been paid, you must enforce your lien through a foreclosure lawsuit within:

• One year for most projects

• Two years for residential homestead properties

Once that deadline passes, your lien becomes void and unenforceable.

6. Don’t Rely on Verbal Promises

In construction, verbal commitments don’t hold up in court. Always get agreements, change orders, and approvals in writing. Written documentation protects your rights and eliminates disputes over what was said.

Protecting Your Right to Payment

Texas lien law demands precision, consistency, and attention to detail. By following these do’s and don’ts, you can significantly improve your chances of getting paid what you’ve earned and avoid the costly mistakes that trip up even seasoned professionals.

If you want to take the guesswork out of deadlines and filings, SunRay Construction Solutions can help. From sending monthly notices to filing liens and bond claims, SunRay ensures every step is completed correctly and on time, so you can focus on your projects, not paperwork.

Common Questions Contractors Ask

How long do I have to file a lien in Texas?
For commercial projects, you must file by the 15th day of the fourth month after the last month of unpaid work. For residential projects, it’s the 15th day of the third month.

Can I file a lien if I didn’t send pre-lien notices?
No. Pre-lien notices are mandatory for subcontractors and suppliers. Without them, your lien will not be valid.

Can I file a lien on a public project?
No. Public projects require a payment bond claim, not a mechanics lien. The procedures and deadlines differ but still protect your right to payment.

What happens if my lien expires?
If you don’t file a foreclosure lawsuit within the statutory deadline, your lien becomes void and cannot be enforced.

Can I handle the lien process myself?
You can, but it’s risky. Texas lien law is technical and full of traps for the unwary. Working with a professional service like SunRay Construction Solutions helps ensure accuracy, compliance, and peace of mind.