A mechanic’s lien is a legal claim filed against property by a contractor, subcontractor, laborer, or material supplier who has not been paid for work performed or materials furnished. These disputes arise frequently in matters involving real estate law. Under the Texas Constitution and the Texas Property Code (Chapter 53), these parties have the right to file a lien to ensure they receive compensation.
A mechanic’s lien can cloud the property’s title, making it difficult for the owner to sell, refinance, or transfer the property until the dispute is resolved. The sections below define the nature of mechanic liens and who can file them.
Who Can File a Mechanic’s Lien in Texas?
A mechanic’s lien is a tool to ensure payment for labor, materials, and services that improve a piece of real property. In other words, it pays for the value a contractor, subcontractor, laborer, or supplier added to the property but has not yet been compensated for.
Texas law allows several categories of parties to file a mechanic’s lien, including:
- General contractors with a direct contract with the property owner
- Subcontractors and sub-subcontractors
- Material suppliers
- Laborers
- Design professionals, such as architects and engineers, under certain conditions
Each category must follow strict notice and filing requirements, and subcontractors must give additional notices because they do not contract directly with the property owner.
Notice Requirements for Property Owners
Generally, under Texas law, subcontractors and suppliers who do not have a direct contract with the owner must provide written notice of unpaid invoices:
- By the 15th day of the second month after the month in which the labor or materials were provided
- By the 15th day of the third month, if payment is still outstanding
These notices are critical for owners, as they alert them to potential payment disputes and allow them to withhold funds from the general contractor to satisfy claims.
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Understanding Mechanic’s Liens in Texas Real Estate
Filing Deadlines
Strict deadlines apply to mechanics’ liens. Generally, for residential projects, liens must be filed by the 15th day of the third month after work is completed.
For commercial projects, claimants typically have until the 15th day of the fourth month. Missing these deadlines may invalidate the lien.
How Property Owners Can Protect Themselves from Mechanic’s Liens
Texas property owners can take several steps to reduce the risk of liens on their property:
- Use written contracts outlining payment schedules and project scope
- Request lien waivers when making payments
- Track subcontractor notices and verify that payment disputes are resolved
- Retain required statutory retainage (typically 10% of the project value) until 30 days after project completion
- Work only with reputable, licensed contractors
Staying proactive throughout the construction process helps prevent surprises down the line.
What To Do If a Lien Is Filed Against Your Property
If a mechanic’s lien is filed, do not ignore it. Property owners may challenge an invalid lien, negotiate payment, or file a bond to remove it from the property title. At Porter Law Firm, an experienced Houston construction disputes attorney can review the claim, determine whether statutory requirements were met, and help you protect your rights.
Contact us today to schedule a free consultation to learn more about your rights under Texas Law.