HB 2054 Relating to Mechanics', Contractors', and Materialmen's Liens. Amends various sections of Chapter 53, Property Code; effective Sept. 1, 1999.
With respect to all liens, the bill:
(1) defines "Completion" of an original contract;
(2) expands from one business day to five business days the time period for a claimant to provide an owner and an original contractor a copy of a lien affidavit; and
(3) redefines the period for bringing suit to foreclose a lien;
With respect to residential construction projects, the bill:
(1) expands the time period for filing liens, the limitations period for bringing foreclosure suits, and the time period for furnishing notices necessary to perfect liens;
(2) requires that a construction contract for improvements to a homestead include a conspicuous statutory notice;
(3) requires that a contractor (before execution of the construction contract) and a construction lender (before closing of the loan) furnish the owner with a statutory disclosure statement that details the owner's rights and responsibilities in connection with the construction project;
(4) requires the contractor, prior to commencement of construction, to furnish the owner with a list of subcontractors and suppliers and update the list after any changes. This right may be waived;
(5) requires the construction lender to deliver all closing documents to the owner not later than one business day before the loan closing;
(6) requires the contractor and the construction lender to furnish the owner with periodic statements detailing the bills that have been or will be paid;
(7) establishes criminal penalties for providing false or misleading information in the periodic statements described above;
(8) requires a contractor to deliver to the owner a final bills paid affidavit as a condition of receiving final payment; and
(9) establishes civil and criminal penalties for making false or misleading statements in the final bills paid affidavit.
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