Most foundation repairs in Amarillo go the way they should: the crew shows up, the piers go in, the house gets leveled, and the homeowner pays the bill. But Texas has a set of rules that can surprise homeowners in the rare case something goes wrong with the money. Under the Texas Property Code, a subcontractor or supplier who doesn't get paid by your contractor can, in some situations, file a lien against your house, even if you paid your contractor in full.
The good news is that the same law gives homeowners a clear set of protections, and they don't cost anything. Here's how it works:
A mechanic's lien is a claim against real property filed by someone who provided labor or materials to improve it and wasn't paid. In Texas, it's filed as an affidavit with the county clerk. Amarillo straddles Potter and Randall Counties, so it depends which side of town you're on. A lien clouds title and can complicate a refinance or a sale until it's resolved.
Two kinds of people can claim one on a foundation job:
In Texas, your homestead is simply the home you own and live in, the same house you claim the homestead exemption on for your property taxes. Texas protects homesteads more than almost any state. For a contractor to fix a lien on your homestead, Section 53.254 of the Property Code requires:
For you, the practical takeaway is simple: insist on a written contract before any work starts, read it, and make sure everyone on the title who needs to sign it does. That protects you whether or not anything ever goes wrong.
Texas requires residential contractors to hand homeowners specific documents. On a foundation repair, ask for each one:
Under Section 53.255, before you sign a residential construction contract, the contractor must give you a disclosure statement that begins "KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW." It covers getting everything in writing, reading before you sign, and your right to a list of subcontractors. A company that has never heard of it is probably not one you want to deal with.
Section 53.256 requires the contractor to give you a written list of every subcontractor and supplier it plans to use, with names, addresses and phone numbers, before construction begins, plus an updated list within 15 days of any change. You can waive this in writing, but you don't have to, and you shouldn't without a good reason. That list tells you whose name to look for on a lien waiver.
A lien waiver is a signed release saying a contractor, sub or supplier gives up lien rights for an amount they've been paid. Texas is strict about them. Under Sections 53.281 through 53.284, a waiver is generally unenforceable unless it substantially follows one of the forms written into the statute. A homemade "paid in full" note doesn't do the job. The four statutory forms are:
The usual rhythm is a conditional waiver when you hand over a payment, then an unconditional one after the check has cleared.
This is the big one. Under Section 53.259, as a condition of final payment on a residential job, the contractor must sign an affidavit stating it has paid everyone in full for the labor and materials, or listing who is still owed and how much. Signing a false one is a crime under Texas law, and the person who signs is personally liable for losses it causes. Don't make the final payment without it.
Section 53.101 tells owners to reserve 10% of the contract price (or 10% of the value of the work completed) during the job and for 30 days after the work is completed. That holdback is your shield: if you reserve it and follow the rules on notices, a subcontractor's or supplier's claim against your property is generally limited to that reserved amount.
Here's the wrinkle with foundation repair. Many jobs take only a few days, and many companies expect payment in full when the work is done. Talk about the 10% before you sign, not when the crew is packing up, and put the agreed payment schedule in the contract. If you don't hold anything back and a sub later goes unpaid, you can end up exposed for up to that 10%.
Also know what to do with a notice of claim. If a subcontractor or supplier sends you written notice that it hasn't been paid, don't pay that amount to your contractor until the dispute is resolved. The law protects owners who withhold after notice. It doesn't protect owners who pay through it.
Texas has one more protection running quietly in the background. Under Chapter 162 of the Property Code, the Texas Construction Trust Fund Act, money you pay a contractor for work on your property is a trust fund, and the contractor holds it as trustee for the subs and suppliers on your job. A contractor who knowingly diverts that money instead of paying them has misapplied trust funds, which can carry civil and criminal consequences. You'll rarely need it, but it's why paying a contractor is not the same as handing them cash for any use.
On a residential job, a subcontractor or supplier generally must file its lien affidavit by the 15th day of the third month after the month it last provided labor or materials (Section 53.052). For work finished in June, that means about mid-September. Once that window passes, a quick search of the county records is an easy way to confirm nothing was filed against your property.
Financing the job? The same rules apply. Our financing guide covers how contractor payment plans and loans work.
Possibly, which is exactly why the holdback, the lien waivers and the bills-paid affidavit matter. If you reserved 10% for 30 days and withheld payment after any written notice of an unpaid claim, Texas law generally limits what a sub or supplier can claim against your property.
Not necessarily. Texas generally enforces waivers only when they substantially follow the statutory forms. Ask for the statutory form.
The lien rules apply to residential improvement work generally, but the stakes rise with the size of the job. On a few hundred dollars of crack sealing, a clear written agreement and a receipt usually do the job. On a pier job, do all of it.
This article is general information about Texas law as written, not legal advice. Lien law has deadlines and technical requirements that turn on the facts. If a lien has been filed or threatened, talk to a Texas real estate or construction attorney.
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