The owner must notify certain subcontractors within 10 days after a contract ends or performance is abandoned, and the notice must include specific information.
Sec. 53.107. NOTICE RELATING TO TERMINATION OF WORK OR ABANDONMENT OF PERFORMANCE BY ORIGINAL CONTRACTOR OR OWNER. (a) Not later than the 10th day after the date an original contract is terminated or the original contractor abandons performance under the original contract, the owner shall give notice to each subcontractor who, before the date of termination or abandonment, has: (1) given notice to the owner as provided by Section 53.056 or 53.057; or (2) sent to the owner a written request for notice of termination or abandonment. (b) The notice must contain: (1) the name and address of the owner; (2) the name and address of the original contractor; (3) a description, legally sufficient for identification, of the real property on which the improvements are located; (4) a general description of the improvements agreed to be furnished under the original contract; (5) a statement that the original contract has been terminated or that performance under the contract has been abandoned; (6) the date of the termination or abandonment; and (7) a conspicuous statement that a claimant may not have a lien on the retained funds unless the claimant files an affidavit claiming a lien in the time and manner required by this chapter. (c) A notice sent in compliance with this section on or before the 10th day after the date of termination or abandonment is prima facie evidence of the date the original contract was terminated or work was abandoned for purposes of this subchapter. (d) If an owner is required to send a notice to a subcontractor under this section and fails to send the notice, the subcontractor is not required to comply with Section 53.057 to claim retainage and may claim a lien by filing a lien affidavit as prescribed by Section 53.052. (e) This section does not apply to a residential construction project. Added by Acts 2005, 79th Leg., Ch. 1003 (H.B. 629), Sec. 2, eff. September 1, 2005. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 6, eff. September 1, 2011. Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 20, eff. January 1, 2022. SUBCHAPTER F. PRIORITIES AND PREFERENCES