Homeowners in Texas often worry about contractors threatening to place a lien on their property when payment disputes arise. Fortunately, Texas has some of the strongest homestead protections in the country, making it extremely difficult for contractors to attach a valid lien to a homestead. Below, we break down the requirements for contractor liens and the legal safeguards homeowners have under Texas law.
Homestead Protection: Why Liens Are Nearly Impossible to Enforce
Under Article 16, Section 50 of the Texas Constitution, it is extremely difficult for contractors to attach a lien to a homestead property. Texas law requires strict compliance with specific rules before a lien can be valid, including:
- A Written Contract – The contract must be in writing and signed by both spouses (if applicable).
- Notarization – The contract must be notarized before any work begins.
- Specificity – The contract must clearly outline the scope of work and payment terms.
Many contractors are unaware of these requirements, leading them to illegally file liens against homeowners who refuse to pay for subpar work. It’s also important to note that there may be additional requirements outlined in the Texas Property Code, making it even more difficult for contractors to successfully perfect a lien on homestead property.
What to Do if a Contractor Files an Illegal Lien
Despite Texas’ strict homestead lien laws, some contractors still file improper liens against homeowners, hoping to pressure them into paying. These liens are invalid and unenforceable, but they can still cause headaches by clouding a property’s title.
If a contractor wrongfully files a lien against your homestead, you have legal options:
- Demand for Release – Send a formal demand letter requiring the contractor to remove the lien.
- File a Lawsuit – Under Chapter 53 of the Texas Property Code, homeowners can sue contractors who file fraudulent liens and may be entitled to damages and attorney’s fees.
- Consult a Lawyer – An attorney can help clear the lien from your property and ensure compliance with Texas law.
Texas homeowners have significant legal protections against wrongful liens. Contractors must comply with strict requirements before placing a valid lien on a homestead—requirements that they almost never follow.
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