Ensure You’re Using Contracts for Your Texas Residential Construction!

Texas protects homeowners in the form of strong homestead laws, which are designed to create stricter guidelines that make it more difficult for homeowners to lose their homes due to claims from creditors (with some exceptions). While these laws are very beneficial to homeowners, contractors in Texas must be sure to follow proper procedures to ensure they have the right to pursue necessary legal avenues in the case that a job goes awry. Residential construction contracts don’t just benefit contractors, however. Homeowners can also gain plenty of protection from a less-than-desirable contractor by ensuring a contract is used when work is done on their property. 

For Contractors

Residential construction contracts can not only help contractors protect themselves from litigation but also provide them the ability to take necessary legal action if necessary. In Texas, some specifications must be met to place a lien on property considered a homestead, which most homes fall under. Your residential construction contract must be in writing, filed with the clerk of the county where the home is located, and most importantly, signed by both spouses of the home if applicable. 

These requirements are often passed over by contractors, especially the requirement of both signatures. While they aren’t required for every contract, it’s always highly recommended to follow these procedures to ensure your ability to file for a lien in the event that a homeowner doesn’t pay for services received. Without the proper contract and signatures, the only option a contractor is left with is often a breach of contract claim, which is significantly harder to enforce and procure payment from. 

For Homeowners

Homeowners also have a lot to gain from a well-written residential construction contract and should ensure that their contracts include the disclosure statements specified in Texas Property Code Section 53.255. These disclosures include some key responsibilities for homeowners which you should be sure to read and follow, such as “Conveyance to contractor not required”, “Get a list of subcontractors and suppliers”, “Read before you sign”, and most importantly, the rules and regulations around claims or liens and how to handle them. These disclosures prepare a homeowner to understand their rights and are frequently missing from contracts provided by unscrupulous contractors. 

Whether you’re a contractor or a homeowner, you should ensure that your contracts are rock-solid to avoid potential trouble, and provide yourself with the best legal options should any issues arise. Albright & Lumpkin is available to help, and with our experience and insight, we can provide you with quality representation to resolve any commercial or residential real estate law issues. Contact us today or call our team at (713) 455-6661.

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Albright & Lumpkin, PC

At Albright & Lumpkin, we help individuals, families, and business owners achieve their goals and protect their futures.

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