| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the survival of a mechanic's retainage lien after the |
|
|
foreclosure of a lien securing a construction loan. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter F, Chapter 53, Property Code, is |
|
|
amended by adding Section 53.125 to read as follows: |
|
|
Sec. 53.125. SURVIVAL OF RETAINAGE LIEN AFTER CERTAIN |
|
|
FORECLOSURES. (a) A person who purchases property that is sold |
|
|
due to the foreclosure of a lien that secures a financing agreement |
|
|
or loan to pay for the construction or repair of an improvement to |
|
|
real property takes the property subject to an unreleased retainage |
|
|
lien established under Section 53.105. |
|
|
(b) For purposes of this section, "retainage" includes |
|
|
retainage under Subchapter E. |
|
|
SECTION 2. The changes in law made by this Act apply only to |
|
|
a lien related to an original contract entered into on or after the |
|
|
effective date of this Act. A lien related to an original contract |
|
|
entered into before the effective date of this Act is governed by |
|
|
the law applicable to the lien immediately before the effective |
|
|
date of this Act, and that law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2019. |