When entering into a construction contract on a personal residence in Texas, the contractor should know about special rules for Texas homestead construction.

Because homesteads have special creditor protections, the lien rules involved in a residential homestead have extra requirement that an ordinary commercial project does not.

To claim a valid lien claim on a Texas homestead,

1. The contract to make the improvements must be in writing and signed by BOTH Husband AND Wife.

2. The contract should be signed BEFORE work starts

3. The contract must be filed with the County Clerk

4.  The contract must have the following MANDATORY warning in 10 point bold type

“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.”

(Texas Property Code 41.007)

5. The contractor must give the owner this Disclosure Statement

(Texas Property Code 53.255)

This are just the preliminary steps, in addition to other notice and lien filing requirements.