News Maker - TEXAS

TEXAS -   Texas legislator Jose Rodriguez had Georgia on his mind as he introduced SB 1281 last month.   SB 1281 and HB 3553 will revise Texas' lien laws to make the processes and procedures for perfecting and maintaining one's lien rights straightforward, and ensure compliance with them is not difficult or a stumbling block to maintaining lien rights.

Borrowing the Notice of Commencement and preliminary notice rules from Georgia, Texas may become the next NOC state following North Carolina's changes in April.

Here's a summary of some of the bills proposed changes:

Notice of Commencement (NOC) –  Owners will have the responsibility to (1)  file a notice of commencement that complies with this statute with the county clerk of each county in which the property is located;  (2)  post the notice of commencement in a conspicuous place on the property; and  (3)  furnish the notice of commencement to the original contractor. Payment Bond must be posted with NOC.  (4) Owner must send copy within 10 days of subcontractor request.   Sub/Supplier's Notice of Furnishing is not required until Owner complies.  But, the subs'/supplier's notice of furnishing must be sent within 20 days of receiving the NOC. The NOC information is used by contractors and suppliers to prepare and service preliminary notices and mechanic's liens.


Serve: Within 30 days of First Furnishing labor, material or services.  (A late notice is acceptable / traps 30 days) 



Within 140 days from Completion – Commericial

Within 110 days from Completion – Residential 

Serve Lien:

Within 10 days of filing. 


Commercial:   Within 2 years after the last day a claimant may file the lien claim.

Residential:     Within one year after the last day a claimant may file a lien claim. 

 News Makers will provide more detail as this bill moves through the Texas legislative process.

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Saturday, 29 February 2020

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