Updated Texas Lien Laws: Texas Design Professionals Now Have Stronger Legal Rights to Secure Payment

This update represents a major shift in Texas construction law. It finally places design professionals on equal footing with contractors and suppliers, allowing them to use the same legal remedies to recover unpaid fees and protect their financial interests. In this blog, we will deep dive into understanding Chapter 53 of the Texas Property Code and the impact of this recent amendment.

Understanding Chapter 53 of the Texas Property Code

Chapter 53 establishes what is commonly known as a mechanic’s and materialman’s lien. It gives construction professionals the right to place a claim on real property when they have not been paid for work or materials that improved that property.

When a lien is properly perfected, the professional can enforce it in court and, if necessary, foreclose on the property to recover the amount owed. The power to foreclose makes the lien one of the most effective legal tools in Texas for securing payment and resolving disputes.

What Changed for Design Professionals

Before this update, lien rights for design professionals were very limited. Only those who had a direct contract with the property owner or the owner’s agent could file a lien. This left many sub-consultants and subcontracted designers without any legal recourse.

The new law removes that restriction. Architects, engineers, and surveyors now have lien rights even when they contract through another party, such as a general contractor or another design consultant.

The amendment also broadens what qualifies as lienable work. It now covers “professional services used in the direct preparation for the work of a design, drawing, plan, plat, survey, or specification.” That means design-related activities like drafting, rendering, scheduling, and surveying now fall within the statute’s protection.

How to Protect Your Right to Payment

Expanded rights also mean greater responsibility to follow the proper process. To enforce a lien, Texas design professionals must meet specific notice and filing requirements set out in Chapter 53. Missing even one deadline can result in losing lien rights entirely.

Step 1: Send a Pre-Lien Notice

Professionals who do not have a direct contract with the property owner must send a pre-lien notice by the 15th day of the third month after providing services. This notice effectively traps funds in the owner’s hands and preserves the right to later file a lien. For ongoing projects, notices should be sent monthly to protect each billing period.

Step 2: File a Lien Affidavit

A lien affidavit must be filed in the county where the property is located no later than the 15th day of the fourth month after the last date of services were provided. It must be notarized and include the amount owed, a description of the work performed, a legal description of the property, and the names of the relevant parties.

Step 3: Send Notice of the Filed Lien

Within five days of filing, a copy of the lien affidavit must be sent to the property owner.

Step 4: File for Foreclosure

If payment remains outstanding, the lienholder must file a foreclosure lawsuit within one year of the lien filing date. Missing this deadline will terminate the lien rights.

Attorneys’ Fees and Additional Benefits

Chapter 53 also allows lienholders to recover reasonable and necessary attorneys’ fees in a foreclosure action. This is an important benefit that helps offset legal costs and makes enforcement more practical for professionals pursuing unpaid claims.

Lienholder Protection in Bankruptcy

A perfected lien also provides significant protection if a party in the payment chain files for bankruptcy.

• If a general contractor declares bankruptcy, the lienholder can still pursue foreclosure against the property owner.

• If the property owner declares bankruptcy, the lien converts into a secured claim, giving the design professional a stronger position during bankruptcy proceedings.

Without a lien, a professional becomes an unsecured creditor and risks receiving little or no payment.

Why These Changes Matter

For years, design professionals faced an uphill battle when payments stalled. These amendments finally give them a clear, enforceable path to secure compensation. The expanded lien rights ensure that those who provide essential design and planning services are no longer left waiting at the end of the payment chain.

In an industry where payment delays are frequent, having lien protection provides peace of mind and negotiating power. It ensures that architects, engineers, and surveyors can focus on their work without fearing financial loss.

How SunRay Can Help Texas Design Professionals

Managing lien rights under Chapter 53 requires precision and timeliness. That is where SunRay Construction Solutions comes in. With nearly 20 years of experience in helping professionals across the construction industry, SunRay simplifies every step of the notice and lien process.

Here is how SunRay supports Texas design professionals:

Accurate and Timely Pre-Lien Notices

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SunRay ensures that all pre-lien notices are prepared and sent within the statutory deadlines, protecting your right to file a lien later.

Seamless Lien Filing and Verification

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Every lien affidavit is verified for accuracy, filed in the correct county, and tracked until completion. SunRay’s meticulous process minimizes the risk of errors and late filings.

Compliance with Texas Law

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SunRay’s team stays fully updated on Chapter 53 requirements and handles all filings in strict accordance with state regulations.

Transparent Tracking and Reporting

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Through SunRay’s secure online platform, you can monitor deadlines, filings, and project details in real time.

End-to-End Payment Protection

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From pre-lien notices to lien filings and deadline reminders, SunRay ensures you are always protected. Whether you are an architect drafting plans or a surveyor preparing a site map, SunRay helps you safeguard the payment you have earned.

Strengthening Protection Through Smart Contracting

While lien rights are a strong safety net, design professionals should also protect themselves through clear and enforceable contracts. Essential clauses include:

• Defined payment timelines

• Interest charges for late payments

• The right to suspend services for delayed payment

• Elimination of “pay-if-paid” clauses

• Recovery of attorneys’ fees in nonpayment disputes

Combined with lien rights, these provisions create a comprehensive legal framework for ensuring fair and timely compensation.

Conclusion

The expansion of lien rights under Chapter 53 of the Texas Property Code represents an important step forward for design professionals in Texas. By following the notice and filing requirements carefully and strengthening contracts with payment-focused provisions, architects, engineers, and surveyors can protect the value of their work and maintain consistent cash flow.

Protect Your Lien Rights with SunRay

Texas lien law can be complex, but payment protection should not be. SunRay Construction Solutions ensures that every notice, lien, and deadline is handled accurately and on time.

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Frequently Asked Questions

Who qualifies as a design professional under Texas’s updated lien laws?

Under the updated Chapter 53 of the Texas Property Code, design professionals include licensed architects, engineers, and surveyors who provide professional services used in the preparation of a project’s design, drawings, plans, plats, surveys, or specifications. These professionals are now explicitly recognized as having lien rights for their work.

Do I still need a contract directly with the property owner to file a lien?

No. Prior to the 2022 amendment, design professionals could only file a lien if they had a direct contract with the owner or the owner’s agent. The new law extends lien rights to design professionals regardless of their contractual relationship, meaning you can file a lien even if your contract is with a general contractor or subcontractor.

What types of services are protected under Chapter 53 now?

The expanded statute now covers professional services used in the direct preparation for construction work, including but not limited to:

• Design and drafting

• Preparation of drawings, plans, and specifications

• Creation of plats and surveys

• Renderings, schedules, and related design documentation

If your work contributes directly to a construction project’s design or planning phase, it likely qualifies for lien protection.

How soon should I send a pre-lien notice after providing services?

If you do not have a direct contract with the property owner, you must send a pre-lien notice by the 15th day of the third month after the month in which you provided services. For ongoing projects, it is best practice to send these notices monthly to ensure continuous lien protection for each billing period.

What happens if I miss the pre-lien notice deadline?

Missing the pre-lien notice deadline can cause you to lose your lien rights entirely for the work performed during that period. The notice is what “traps” funds in the owner’s hands, preserving your ability to file a lien. If you fail to send it on time, you may have no legal leverage to enforce payment for that portion of work.

Can design professionals recover attorney’s fees if they need to foreclose a lien?

Yes. Chapter 53 allows lienholders, including design professionals, to recover reasonable and necessary attorneys’ fees in any action to foreclose on a lien. This benefit helps offset the cost of legal action and makes lien enforcement more accessible when payment disputes occur.

How does filing a lien help if a contractor or owner goes bankrupt?

Filing a lien provides a significant advantage in bankruptcy proceedings.

• If a general contractor files for bankruptcy, you can still seek repayment through foreclosure on the owner’s property.

• If the owner files for bankruptcy, your lien allows you to assert a secured claim, giving you priority over unsecured creditors.

Without a properly filed lien, you are treated as an unsecured creditor and face a much higher risk of nonpayment.

What are the most common mistakes design professionals make when filing liens in Texas?

Some of the most frequent errors include:

• Failing to send pre-lien notices on time

• Using incorrect property descriptions in lien affidavits

• Missing the lien filing deadline

• Not sending the owner a copy of the filed lien within five days

• Failing to file a foreclosure lawsuit within one year

Each step in the lien process is governed by strict deadlines. Even a single missed date or incorrect filing detail can result in losing lien rights completely.