Full question:
I am having a room built onto my house. How can do so such that sub-contractors and materials suppliers cannot place liens on my house if the general contractor does not pay them?
- Category: Judgment Liens
- Date:
- State: Texas
Answer:
To prevent subcontractors and material suppliers from placing liens on your property, you should follow these steps:
1. **Request a list of subcontractors and suppliers**: Your general contractor must provide you with a written list of all subcontractors and suppliers before construction begins. You can waive this requirement, but it's advisable to keep it.
2. **Obtain a final payment affidavit**: Before making the final payment to your contractor, ensure they provide you with an affidavit confirming that all subcontractors and suppliers have been paid in full. If any payments are outstanding, the affidavit should specify the amounts owed and the names of the claimants.
3. **Retain 10 percent of the contract price**: During construction and for 30 days after completion, retain 10 percent of the contract price or the value of the work done. This retainage secures payment for any claims.
4. **Withhold payment for unpaid claims**: If you receive a notice of an unpaid claim from a subcontractor or supplier, withhold payment to the contractor for that amount until the issue is resolved.
5. **File a notice of completion**: You can file a notice of completion with the county recorder's office. This starts a 30-day period during which subcontractors must file any liens.
If you follow these steps and comply with the law regarding retainage and payment withholding, any lien claims filed by subcontractors or suppliers who did not contract directly with you will not be valid. Additionally, you will not be liable for amounts paid to your contractor before receiving notice of a claim.
Relevant Texas statutes include:
- § 53.081: Authority to withhold funds for benefit of claimants
- § 53.084: Owner's liability
- § 53.259: Final bills-paid affidavit required
- § 53.101: Required retainage
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.