79R5650 AJA-D

By:  Farabee                                                      H.B. No. 1261



A BILL TO BE ENTITLED

AN ACT

relating to placement of a mechanic's lien on residential real 
property.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 53.252(b), Property Code, is amended to 
read as follows: 
	(b)  The claimant must give to the owner or reputed owner and 
the original contractor written notice of the unpaid balance.  The 
claimant must give the notice not later than the 15th day of the 
second month following each month in which all or part of the 
claimant's labor was performed or material or specially fabricated 
material was delivered.  The claimant may not file an affidavit 
under Section 53.052 before the 15th day after the date notice is 
provided under this subsection.  The affidavit must contain, in 
addition to the information required by Section 53.054, a sworn 
statement that the notice required by this subsection was provided 
by the claimant.
	SECTION 2.  Section 53.254, Property Code, is amended by 
amending Subsections (a), (d), and (e) to read as follows:
	(a)  To fix a lien on a homestead:                                      
		(1)  [,] the person who is to furnish material or 
perform labor and the owner must execute a written contract setting 
forth the terms of the agreement; and
		(2)  if the contract is made by an original contractor, 
before the contract is executed, the disclosure statement required 
by Section 53.255 must be provided to and signed by the owner.
	(d)  If the contract is made and the required disclosure 
statement is given by an original contractor, the contract and the 
provision of the statement inures to the benefit of all persons who 
labor or furnish material for the original contractor.
	(e)  The contract and a copy of the signed disclosure 
statement provided under Subsection (a) must be filed with the 
county clerk of the county in which the homestead is located.  The 
county clerk shall record the contract and disclosure statement in 
records kept for that purpose.
	SECTION 3.  Section 53.255(c), Property Code, is amended to 
read as follows: 
	(c)  Except as provided by Section 53.254, the [The] failure 
of a contractor to comply with this section does not invalidate a 
lien under this chapter, a contract lien, or a deed of trust.
	SECTION 4.  The change in law made by this Act applies only 
to a residential construction contract entered into on or after the 
effective date of this Act.  A residential construction contract 
entered into before the effective date of this Act is governed by 
the law in effect immediately before that date, and that law is 
continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2005.