Who can claim a Texas mechanic's and materialmen's lien?

Many different types of laborers and material suppliers are entitled to liens in Texas for labor and materials provided.   The Texas Property Code and Texas Constitution describe who may be entitled to liens. 

To be entitled to a lien, the claimant must have a contract with the Owner of the real property.  The contract can be made with an agent of the Owner such as a trustee, receiver, general contractor, or subcontractor. 

The contract must be in writing if:

         1.         the labor and materials were provided to a residential homestead project

         2.         an architect, engineer, or surveyor prepares a plan or plat

The following is a list of persons entitled to statutory liens under the Texas Property Code:

General Laborers & Material Suppliers …

… who labor, specially fabricate materials, and furnish labor or materials for construction or repair of:

1. a house, building, or improvement
2. a levee or embankment to be erected for the reclamation of overflow land along a river or creek
3. a railroad

Architects, Engineers & Surveyors …

… who prepare a plan or plat in connection with

1. the actual or proposed design, construction, or repair of improvements on real property
2. the location of the boundaries of real property

*** Must have contract in writing.

Landscapers & Others …

… who provide labor, plant material, or other supplies for the installation of landscaping for a house, building, or improvement.  This includes construction of a retention pond, retaining wall, berm irritation system, fountain, or other similar installation

Demolition … Persons who labor or furnish labor or materials for the demolition of a structure on real property.

“Mechanics, Artisans and Material Men, of every class”

The Texas Constitution states that “mechanics, artisans and material men, of every class” shall have lien rights.  Constitutional liens are discussed in detail later in this article.

By Sarah F. Berry, Attorney 

If you are interested in attending a Texas lien and bond claim workshop please contact Sarah Berry for more information.  Sarah@LPVLaw.com or (512) 472-2300.

Texas Property Exemptions from Execution

Texas exemptions are very broad, as many Texas collection attorneys will tell you. As of 2011, Texas property in the following categories is exempt from execution, whether for a family or for a single adult:

1. The homestead (Texas Constitution);

2. Personal property up to the aggregate fair market value of $60,000.00 for a family or $30,000.00 for a single adult who is not a member of a family. The personal property must fit into categories as described in the statute (Tex. Prop. Code §42.001);

3. Current wages for personal service (except for payment of child support) and unpaid commissions for personal services not to exceed twenty-five percent (25%) of the $30/$60,000 aggregate limitations (Tex. Prop. Code §42.001);

4. Prescribed health aids (Tex. Prop. Code §42.001);

5. Worker's compensation payments (Tex. Labor Code §408.201);

6. Cemetery lots held (Tex. Prop. Code Ann. § 41.002);

7. Art held on consignment;

8. Assets in the hands of the trustee of a spendthrift trust for the benefit of the judgment debtor;

9. Certain types of insurance benefits;

10. Certain savings plans, including retirement benefits and health savings plans; and

11. College Savings Plans (Tex. Prop. Code Ann. § 42.0022).

There are others, but this is a basic list that should be reviewed before seeking to collect on any debt. Texas is obviously debtor friendly in its broad exemptions, so if you are an out of state collector, it would be important to discuss strategy before hiring local counsel for domestication of foreign judgments in Texas.

Texas Guarantor Not Liable Under Lease Renewal

The Texas Legislature made couple of revisions to the Texas Property Code during the 81st Legislative Session. They added Section 92.021 which addresses liability of guarantors under lease renewals. Under the new code section, for lease agreements executed on or after January 1, 2010, a guarantor is not liable under a lease renewal unless the guarantor expressly agreed to be liable under a lease renewal in the original lease. The original lease must contain specific information as set out in the new code section to bind a guarantor under a lease renewal. Landlords should review and revise their leases as necessary before January 1, 2010.

Part 1: Texas Public Works Construction Projects & Subcontractors

For the next couple of weeks we will be posting a series of blogs relating to Texas Public Works Construction Projects & Subcontractors. Construction or improvements to public property in Texas are commonly referred to as public construction, public works contracts, or public projects. Some examples of public property are schools, courthouses, hospitals, highways, and bridges. On public projects, a subcontractor provides materials or labor to a general contractor whose contract is with a public entity. Unlike private property projects, a subcontractor in Texas cannot place a lien against public property due to nonpayment. Consequently, in order to protect their interests and increase their odds of receiving payment in full, subcontractors must be aware of the process and deadlines specific to public projects. In most cases, subcontractors on public projects who have not been paid by the general contractor may make a claim on the payment bond posted by the general contractor. A payment bond is a bond posted by the general contractor for the protection of subcontractors and sub-subcontractors. In more limited circumstances, subcontractors may have limited lien rights in money owed to the general contractor.

Please visit our blog again in a few days for Part 2: Texas Public Works Construction Projects & Subcontractors: Prime Contracts Less Than $25,000.00.

Texas law governing public projects can be found in Texas Government Code Chapter 2253 (formerly known as the McGregor Act) and Texas Property Code Chapter 53.