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Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Texas lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party’s right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let’s dive into the world of Texas lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Don’t mess with Texas—including its lien waiver laws. The state’s rules and regulations can be nuanced and tricky.
Texas provides parties with four statutory lien waiver forms:
- conditional waiver and release on progress payment,
- unconditional waiver and release on progress payment,
- conditional waiver and release on final payment, and
- unconditional waiver and release on final payment.
Each lien waiver form must match the official format and content “substantially” to be considered valid in this state.Here are some other things you need to know when dealing with Texas lien waivers:
- If you’re working on the construction, remodeling, repair, or development of a single-family house, townhouse, or duplex, you don’t need to use these statutory forms. (We’d still recommend matching your Texas lien waivers to the state-mandated forms as closely as possible, as language has already been approved by the state and is clearly interpreted in the court of law.)
- Texas statutes firmly prohibit advance lien waivers, or waivers that eliminate lien rights before work begins. Texas lien waivers must be exchanged in connection to payment for work performed or materials furnished. Better yet, lien rights are not legally waived until payment clears in the bank.
Texas offers four forms for each type of lien waiver.
The state provides outlined forms for both conditional and unconditional lien waivers.
The state provides outlined forms for both conditional and unconditional lien waivers.
Texas lien waivers are considered valid when they:
- are in writing
- follow the outlined format with content specified in state statutes
- are signed by the claimant
- are exchanged pursuant to or following payment
As lien waivers must be exchanged in connection to payment, lien rights cannot be waived in the contract.
In Texas, lien rights cannot legally be waived until payment comes through.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers—individually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Texas does provide four specific statutory lien waiver forms for parties to use. Language and format must align “substantially” to be considered valid. Comply as much as possible, or risk giving up your leverage to secure payment for your work.
Texas lien waivers are governed by the requirements in Texas Property Code - PROP § 53.281 and must follow each of the below elements to be valid:
- Waivers need to follow one of the four outlined forms “substantially.”
- They must be signed by the party waiving their lien rights.
- They must be exchanged after work begins, either pursuant to or following payment.
Texas firmly stands against advance lien waivers, as waivers in the state must be exchanged in connection to payment for work performed or materials furnished. Lien rights aren’t actually waived until this payment clears.
Parties must follow guidelines and the outlined forms shared in state statutes for the four lien waiver subtypes:
- A conditional waiver and release on progress payment indicates that you will waive your lien rights for that specific portion of the project after the GC pays the noted amount. This should be exchanged when you submit a pay app for a progress payment.
- An unconditional waiver and release on progress payment should ideally be exchanged after you receive payment for the specified amount, thus allowing you to waive your right to file a lien on this portion of the project. (If you exchange this waiver before being paid for a Texas construction job, you surrender your primary leverage for securing payment—and violate state law via the terms of the lien waiver form.)
- A conditional waiver and release on final payment states that you will waive your lien rights for the entire project, only if the GC pays in full. Submit this waiver with the final pay app to signify a project has ended.
- Lastly, an unconditional waiver and release on final payment should be exchanged after full payment has been received from the GC, including retention and fees. This waives all of your lien rights on the project.
(If you’re contemplating which type of lien waivers to use and when, check out this comprehensive guide.)
No specific statutory provision exists stating that lien waiver provisions can’t be added to the contract in Texas. However, the templates for conditional and unconditional waivers and releases for both progress payments and final payments are contingent on payment. Since parties have to use these lien waiver forms by law, lien rights cannot be waived in the contract, either before work begins or payment is granted.
Texas's statutory lien waiver forms offer clarity and peace of mind, as their language is clearly interpreted in court. However, if a dispute arises, first negotiate directly with the other party, reviewing the contract and lien waiver. If that fails, consult a Texas construction law attorney.
Texas lien waivers are essential documents to understand before doing construction business in the state. Knowing their ins and outs can help protect you from payment delays or hassles. Get to know Texas lien waiver regulations here:
- Texas Property Code, Title 5, Subtitle B, Chapter 53, Subchapter A., Section 53.284 – Forms for Waiver and Release of Lien or Payment Bond Claim
- Texas Property Code, Title 5, Subtitle B, Chapter 53, Subchapter A. General Provisions (covers mechanic’s liens and lien waivers)
- Texas Department of Licensing & Regulation
- State Bar of Texas Construction Law Section
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients—without ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who’s received the form, who’s opened it, and who has (or hasn’t) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.