Texas Homestead Roof Contract: Liens and the 10% Reserve

The short answer

A roofing contract on your own home does more than set a price. In Texas, if the house is your homestead, the contract is also the document that lets a contractor fix a lien on it, and a subcontractor or supplier who isn't paid can pursue the property even if you paid your roofer. The Texas Attorney General says to read every word, never sign with blanks, and have a notary present if there will be a lien. State law also tells owners to hold back 10% for 30 days after the work is done, and to get a bills-paid affidavit before final payment. This is general information, not legal advice, and an attorney can tell you how it applies to your job.

What we opened

The Texas Attorney General's guide, How to Avoid Home Improvement Scams
The enrolled text of House Bill 2237 (2021), which rewrote the mechanic's lien notices and reserve rules and took effect January 1, 2022
A copy of Texas Property Code §53.254, the homestead lien requirements (a mirror of the statute; the official text is on the Texas Legislature's website)

Statutes get amended, so confirm anything important against the current Property Code or with a lawyer.

Why a homestead contract is different

Under §53.254, to fix a lien on a homestead:

The contractor and owner must sign a written contract that sets out the terms.
The contract must be signed before materials are furnished or labor is performed.
If you're married, both spouses must sign.
The contract must be filed with the county clerk of the county where the homestead is located.

The Attorney General adds that any homestead improvement contract must carry this warning: "Important Notice: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. Know your rights and duties under the law."

If there will be a lien on your home, the AG says a notary other than the salesperson should be present when you sign. It calls it a warning sign if the salesperson doesn't have a notary there or says they'll "take care of the notarization later."

If your roofer doesn't pay the suppliers

The AG says that if your contractor fails to pay subcontractors and suppliers, you can be responsible, even though you didn't hire them. Under Texas law, the property may be subject to a lien for the unpaid amount.

House Bill 2237 spells out the notice that gets delivered to owners when that happens. It says your property may be subject to a lien if:

After you receive written notice of an unpaid claim, you fail to withhold enough from your contractor to cover it until the dispute is resolved, or
During construction and for 30 days after your contractor's work is completed, you fail to reserve 10 percent of the contract price or of the value of the work.

It also says that if you did reserve the 10 percent and withheld what the notice required, a lien claim by a subcontractor or supplier who didn't contract directly with you is not a valid lien on your property, and, apart from the required 10 percent, you aren't liable for amounts you paid your contractor before you got written notice of the claim.

The bill's text also says the legal notices must be sent within strict time periods and that you should consult an attorney when you receive a written notice of a claim.

The 10 percent reserve

House Bill 2237 amended §53.101: during the work and for 30 days after it's completed, the owner must reserve 10 percent of the contract price, or 10 percent of the value of the work done so far. In plain English, don't treat the last 10 percent as a closing-day payment. Ask your roofer how the contract handles it, and have that in writing. Insurance claim checks, deductibles, and mortgage company endorsements can complicate timing, so see our article on when a mortgage company holds the roof claim check.

The bills-paid affidavit and lien releases

The same notice in HB 2237 gives this advice:

When you receive a notice of claim, don't release withheld funds without a signed and notarized release of lien and claim from the claimant.
You can reduce the risk of a claim by requiring, as a condition of each payment, that your contractor give you an affidavit stating that all bills have been paid.
On final completion and before final payment, Texas law requires the contractor to furnish a bills-paid affidavit. If the contractor lists any unpaid bill, withhold that amount until you get a waiver or release from that subcontractor or supplier.

Other protections from the Attorney General

Get written bids from more than one contractor, and be wary of a "low-ball" price much lower than the rest. Our guide on contractor scams and three bids goes deeper.
Insist on a written contract that says what the contractor will do, when the work starts, and when it's completed.
Don't sign a contract with blanks, and don't be rushed. Keep copies of everything you sign.
If the job costs more than $5,000 on a homestead, the AG says the contractor is required to deposit your payments in a construction account, and suggests you ask for written verification and have access to the account records in the contract.
Don't pay in full before the work is done and you've inspected it. Don't sign a certificate of completion until all the work is finished and the site is cleaned up.

A short checklist before you sign

Is the house your homestead? If yes, expect the lien warning, notary, and recording steps above.
Does the contract list scope, materials, start date, and completion date, with no blanks?
How is the 10% handled, and when is final payment due?
Will you receive a bills-paid affidavit and lien releases before final payment?
Who are the subcontractors and suppliers, and has the contractor paid them?
Does the job involve an insurance claim? Review the roof claim steps after a storm and avoiding contractor scams.

What this post is not promising

We aren't lawyers. We don't write contracts or give legal advice.
We haven't seen your contract and can't tell you whether a lien has been or could be filed.
We don't quote prices, make claims about insurance coverage, or guarantee any outcome.

Bottom line

On a homestead, the roofing contract can put your home at risk if bills go unpaid down the line. Read it fully, have the notary present, hold back the 10 percent the law requires, and don't make final payment until you have the bills-paid affidavit and lien releases for anything the affidavit lists as unpaid. If something looks off, talk to an attorney before you sign or pay.

Planning a roof project? Request a free, no-obligation quote and get your questions answered before you sign anything.