Why this matters
If a contractor does not pay a subcontractor or a supplier, that person may be able to claim against your property. Chapter 53 of the Texas Property Code is the state's mechanic's lien law. Parts of it are written for homeowners. We read the sections below on November 6, 2026.
What the law says
- Definition (section 53.001). A residential construction contract is a contract in which a contractor agrees to construct or repair the owner's residence, including improvements next to it.
- Written contract for a homestead (section 53.254). To fix a lien on a homestead, the contract must be written, signed before the material is furnished or the labor is done, and signed by both spouses if the owner is married.
- Disclosure statement (section 53.255). Before you sign, the original contractor must give you a disclosure statement. It tells you, among other things, to know your contractor and verify references, to get the agreement in writing with the work, the time, the cost and how you pay, to put any promise or warranty in the written agreement, because an oral promise may not be enforceable, to read before you sign, and to monitor the work and payments. It says an independent inspector can review work in progress, and that lender and government inspections are not quality control.
- List of subcontractors and suppliers (section 53.256). Before work starts the contractor must give you a written list with name, address and phone of each subcontractor and supplier, and update it within 15 days of a change. You can sign a waiver of the list, so read before you sign.
- Final bills-paid affidavit (section 53.259). As a condition of final payment, the original contractor must give you an affidavit that everyone has been paid in full for labor and materials, or that names who is owed and how much.
Source: Texas Property Code, chapter 53, read November 6, 2026. The chapter is long and has other rules, such as retainage and lien deadlines, that we did not summarize. This is general information, not legal advice. For a specific contract, talk to a Texas attorney.
Questions to ask before you sign
- May I see the disclosure statement now, before I sign?
- May I have the list of subcontractors and suppliers? Do you use any? Do not sign a waiver of the list unless you understand why.
- Does the contract say what the work is, how long it takes, what it costs, and how and when I pay?
- Is every warranty or promise written in the contract itself?
- Will you give me a final bills-paid affidavit before I make the final payment?
- Is the permit closed before final payment? (See the permit guide.)
Frequently asked questions
Does this law apply to a foundation repair contract?
Section 53.001 defines a residential construction contract as a contract in which a contractor agrees to construct or repair the owner's residence. That wording covers repair. Whether your specific job fits is a question for your contractor or an attorney.
What is a final bills-paid affidavit?
A sworn statement, given at final payment, that the original contractor has paid everyone in full for labor and materials, or that lists who is still owed. Section 53.259 requires it as a condition of final payment under a residential construction contract.
Is a promise made on the phone enough?
The required disclosure says an oral promise that is not in the written agreement may not be enforceable under Texas law. Put every promise, including any warranty, in the contract.