Can a Materialman’s Lien be Placed on a Homestead in Texas?

In the state of Texas, homeowners often take great pride in their homesteads, which are properties protected by a variety of legal provisions. Among these safeguards is the homestead exemption, which protects a homeowner's primary residence from certain types of creditors. However, a critical question arises when contractors hired to complete improvements on a homestead find themselves without payment for their completed work. Can a contractor file a materialman's lien to collect payment on a property protected by homestead exemption in Texas? In this blog post, we will explore this topic to help homeowners and contractors alike understand the intricacies of materialman's liens and homestead protections in the Lone Star State.

What is a Materialman's Lien?

A materialman's lien, also referred to as a mechanics' lien, is a legal claim that contractors, subcontractors, or suppliers can file when they haven't been paid for providing labor or materials for a home improvement. The requirements for placing a materialman's lien on a homestead in Texas are outlined in Texas Property Code Chapter 53. These liens allow the unpaid parties to claim an interest in the property as security for the debt owed to them. Materialman's liens can be a powerful tool for contractors and suppliers to ensure they are compensated for their work and materials. ​

Can a Materialman's Lien be Placed on a Homestead in Texas?

The short answer is yes, a materialman's lien can be placed on a homestead in Texas, but the process is not straightforward, and there are significant limitations and safeguards in place to protect the homestead owner's interests. 

Contracts and Notarized Signatures: Prior to the work on the homestead being completed, there must be a formal contract in place signed by both parties. The signatures must be notarized so the contract can be filed at the county clerk’s office. This notarization serves as a legally binding confirmation of the contract's authenticity and ensures that both parties are fully aware of their commitments and obligations.

Filing in the County Clerk’s Office: Once the notarized contract is in place, it is essential to file it in the county deed records, which serves as a public repository for property-related documents. Filing the contract with the county clerk’s office is a critical step in the process, as it makes the materialman's lien enforceable and discoverable during a title search. This step provides transparency and clarity in property transactions, safeguarding the interests of all parties involved.

Notice Requirement: One of the crucial elements in this process is adhering to the notice requirements stipulated in the Texas Property Code. In order to file a lien for non payment the contractors, subcontractors, and suppliers must provide notice to the owner and the original contractor not later than the 15th day of the second month following the month in which the material or labor was delivered. This notice must be in writing and sent via certified or registered mail.

If all of these conditions are met, a contractor, subcontractor, or supplier may proceed to file a materialman's lien on the homestead, allowing them to assert their rightful claim for payment. However, it's crucial to note that compliance with these stringent requirements is vital, as any deviation could jeopardize the validity of the lien. Therefore, it is essential to follow the legal procedures meticulously.

Seek Legal Counsel

Given the complexities and legal nuances involved in placing materialman's liens on homesteads, it is strongly advisable for both homeowners and contractors to seek the guidance of an attorney well-versed in Texas property law. An experienced attorney can provide invaluable advice, ensure that all necessary steps are taken, and help navigate any potential disputes that may arise in the process. Under the guidance of an attorney, you can safeguard your rights and ensure a smooth journey through the intricate legal terrain of materialman's liens and homestead protections in Texas.