To what Texas property does a mechanic's and materialmen's lien attach?

A valid lien extends to the “house, building, fixtures, or improvements, the land reclaimed from overflow, or the railroad and all of its properties, and to each lot of land necessarily connected or reclaimed.”

In a city, town, or village, the lien extends to “each lot on which the house, building, or improvement is situated or on which the labor was performed.” 

For property outside of a city, town, or village, the lien extends to “not more than 50 acres on which the house, building, or improvement is situated or on which the labor was performed.” 

The lien does not extend to abutting sidewalks, streets, and utilities that are public property.  You cannot have a lien on public property.

Texas Property Code § 53.022

By Sarah F. Berry, Attorney  

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

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.

Why is Texas mechanic's and materialman's lien process so complicated?

The Texas lien process seems a little complicated, and it is.  Why do Texas contractors have to comply with notice and filing requirements and deadlines to perfect a lien?  The lien claim process was designed to protect property owners as well as contractors.  The requirements for Texas General Contractors who have made their agreement directly with the Owner of property are less onerous than the requirements on Subcontractors who have their agreements with the General Contractor.  The rationale behind the varying requirements and deadlines is that the Owner should be given the opportunity to protect his property.

It is the Owner’s responsibility to pay the General Contractor.  There is no doubt that the Owner will know if the General Contractor has not been paid and may ultimately claim a lien.  Accordingly, the process for a General Contractor to claim a lien is not very complicated.

On the other hand, it is not the Owner’s responsibility to pay Subcontractors.  It is the General Contractor’s responsibility to pay Subcontractors according to their contracts.  Without notice, the Owner may not ever know that a Subcontractor has been hired, what the terms of their agreement with the General Contractor are, and whether or not Subcontractors have been paid by the General Contractor.  Accordingly, Subcontractors in Texas are required to provide certain notices to the Owner in order to perfect their lien rights, which is where it can get complicated.

By Sarah Berry, attorney 

Check our blog next week for the next post on mechanic's and materialmen's liens.

Our firm regularly hosts what we like to call "Texas Lien & Bond Claim 101" workshops with small groups of contractors.  If you are interested in attending a workshop please contact Sarah Berry for more information.  Sarah@LPVLaw.com or (512) 472-2300.