DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

Texas

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in Texas, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/texas · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkPromulgated rates and forms: the Commissioner fixes the premiums, and Texas uses its own T-forms instead of ALTA forms.

Texas at a Glance

Topic Texas answer Where it comes from
When a lien takes effect (priority) Inception = visible commencement of construction or delivery of materials; an affidavit of commencement can fix the date Tex. Prop. Code § 53.124
Lien affidavit deadline (non-residential) 15th day of the 4th month after the month work was completed (original contractor) or last furnished (others) § 53.052
Lien affidavit deadline (residential) 15th day of the 3rd month § 53.052(a)(2), (c)
Sub/supplier notice (since 2022) Notice of unpaid claim by the 15th day of the 3rd month (non-residential) or 2nd month (residential) after the month furnished § 53.056
Suit to foreclose By the 1st anniversary of the last day the affidavit could be filed (extendable by recorded agreement to 2 years) § 53.158
Bond to discharge 2x the liens; if over $40,000, the greater of 1.5x or the liens plus $40,000 § 53.172
Homestead liens Written contract signed before work, by both spouses, and recorded § 53.254
Execution and recording Acknowledgment (or proof by two subscribing witnesses); notice-type recording act §§ 12.001, 13.001
Online notarization Yes, by commissioned online notaries Tex. Gov't Code § 406.110
Deed transfer tax None; the Texas Constitution bars any new transfer tax on a fee-simple conveyance of real property Tex. Const. art. VIII, § 29
Mortgage/indebtedness tax None (no state statute)
Future advances No general future-advance statute; title coverage comes through the T-35 Revolving Credit Endorsement and T-3 Down Date Endorsement TDI Basic Manual
Title premium regulation Promulgated: the Commissioner fixes the rates; no other rate may be charged; 6.2% cut effective March 1, 2026 Tex. Ins. Code § 2703.151; Order 2025-9697
Forms Texas T-forms (T-1, T-1R, T-2, T-2R, T-7) and T-endorsements, not ALTA forms TDI Basic Manual, Section II

1. Mechanics' Lien Rules

Plain English

Texas mechanic's liens are constitutional and statutory, and they are deadline-driven. The big idea for title is inception: a lien's priority dates back to the day construction visibly started or materials were delivered to the land, not the day the lien affidavit is filed. A deed of trust recorded before inception is safe; one recorded after it can be primed by the improvements. Texas rewrote its lien statute effective January 1, 2022 (H.B. 2237). Subcontractors and suppliers now send one simplified notice of unpaid claim by a monthly deadline, and the lien affidavit and lawsuit deadlines were shortened and simplified. Homesteads get extra protection: no lien unless there is a signed, recorded written contract made before work started.

Key Rules

Inception and priority (Tex. Prop. Code §§ 53.123, 53.124).

  • A mechanic's lien attaches to the improvements in preference to any prior lien on the land, but it does not affect a lien or mortgage that existed at the time of inception (§ 53.123).
  • Inception is the commencement of construction or delivery of materials that is visible from inspection of the land (§ 53.124(a), (b)).
  • Owner and original contractor may jointly record an affidavit of commencement within 30 days of actual commencement; it is prima facie evidence of the inception date (§ 53.124(c), (d)).

Lien affidavit (§ 53.052).

  • Original contractor: by the 15th day of the 4th month after the month its work was completed, terminated, or abandoned; 3rd month on residential construction projects.
  • Other claimants: by the 15th day of the 4th month after the month they last provided labor or materials; 3rd month on residential projects. Retainage claims: 15th day of the 3rd month after the original contract was completed, terminated, or abandoned.
  • Filed with the county clerk; failure of the clerk to index correctly does not invalidate the lien (§ 53.052(e)).

Notice of unpaid claim (§ 53.056). A claimant other than an original contractor must send the statutory notice to the owner and original contractor by the 15th day of the 3rd month (non-residential) or 2nd month (residential) after the month the labor or materials were provided.

Retainage (§ 53.101). The owner must reserve 10% of the contract price (or of the value of work) during the work and for 30 days after completion.

Suit (§ 53.158). Suit to foreclose must be brought by the first anniversary of the last day the claimant could file its affidavit. A recorded written agreement with the record owner can extend this to the second anniversary of the affidavit filing.

Bond to discharge (§§ 53.171, 53.172). Any person may file a bond with the county clerk to indemnify against the lien (except a lien the owner granted in a written contract). Amount: double the liens, unless the liens exceed $40,000, in which case the greater of 1½ times the liens or the liens plus $40,000. The bond must be by a licensed corporate surety. The clerk issues notice of the bond to each claimant by certified mail and records the bond, notice and certificate of mailing; the lien is discharged once that is done, and a buyer, lender or title insurer may rely on the record as if the lien were released (§§ 53.171(c), 53.173, 53.174).

Homestead (§ 53.254). To fix a lien on a homestead, the contract must be written, executed before material is furnished or labor performed, signed by both spouses if the owner is married, and filed with the county clerk. The lien affidavit must carry the bold notice: "NOTICE: THIS IS NOT A LIEN. THIS IS ONLY AN AFFIDAVIT CLAIMING A LIEN."

Bills-paid affidavit (§ 53.259). On residential construction, the original contractor gives a final bills-paid affidavit when final payment is tendered, and the seller of property with a structure of up to four units that the buyer intends as a principal residence gives the buyer a bills-paid affidavit at closing (§ 53.259(b)).

Practice Points

  1. Inspect for inception. Before recording a construction deed of trust, confirm (by inspection, photos, or an affidavit of no commencement) that nothing visible has started on the land. A survey dated weeks earlier doesn't answer this.
  2. Policies issued before completion. Basic Manual Procedural Rule P-8 requires an owner's policy that includes the cost of contemplated improvements, and a loan policy issued before improvements are completed, to except liens for work or materials (insuring only against liens filed before the policy date), with a liability or pending-disbursement paragraph. The exception can be removed by promulgated endorsement once the improvements are complete and accepted and the company has satisfactory evidence that all bills are paid.
  3. New-home sales. Collect the seller's § 53.259(b) bills-paid affidavit, and check the clerk's records through the latest affidavit deadline.
  4. Homestead improvement liens. If a lien claimant has no written, pre-work contract signed by both spouses and recorded, it has no homestead lien. Check the record before treating the affidavit as a valid lien.
  5. Bonded-around liens. Confirm the bond meets the § 53.172 amount and that the notice of bond was recorded before deleting the lien.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

A Texas deed is recordable if it is acknowledged before a notary (or proved by two subscribing witnesses). Texas uses a notice recording statute: an unrecorded deed or deed of trust is void only against creditors and later purchasers who paid value without notice. Texas has online notarization by commissioned online notaries. There is no state transfer tax and no mortgage tax. Two Texas-only rules drive many closings: homestead property needs both spouses to sign to sell or encumber it, and home equity loans must follow the Texas Constitution, including closing only at the office of the lender, an attorney, or a title company.

Key Rules

  • Recording (Tex. Prop. Code § 12.001). An instrument may be recorded if acknowledged, sworn to with a proper jurat, or proved. A conveyance must be signed and acknowledged or sworn to by the grantor before two or more credible subscribing witnesses, or acknowledged or sworn to before an authorized officer. Since Dec. 4, 2025 (S.B. 16), anyone presenting a conveyance in person for recording must show the county clerk photo identification (§ 12.001(b)(2)).
  • Notice statute (§ 13.001). An unrecorded conveyance, mortgage, or deed of trust is void as to a creditor or a subsequent purchaser for value without notice, but binds the parties, their heirs, and anyone with notice or who didn't pay value.
  • Online notarization (Tex. Gov't Code § 406.110). The certificate must say it was an online notarization and whether the signature was tangible or electronic.
  • Homestead joinder (Tex. Fam. Code § 5.001). Neither spouse may sell, convey, or encumber the homestead without the other spouse's joinder, whether it is separate or community property.
  • Home equity (Section 50(a)(6)) loans (Tex. Const. art. XVI, § 50(a)(6)). Among many requirements: all debt secured by the homestead can't exceed 80% of fair market value ((a)(6)(B)); fees are capped at 2% of principal, excluding certain items such as third-party appraisal, survey and the state base title premium ((a)(6)(E)); the loan can't close before the 12th day after the later of the application or the required notice ((a)(6)(M)(i)); it may be closed only at the office of the lender, an attorney, or a title company ((a)(6)(N)); and the owner and spouse may rescind within 3 days ((a)(6)(Q)(viii)).

Practice Points

  1. Homestead check on every deal. If the property is or could be a homestead, get both spouses' signatures, or a solid non-homestead affidavit and designation where appropriate.
  2. Home equity loans need the T-42 and T-42.1 endorsements and strict compliance review. Defects can make the lien unenforceable; Finance Comm'n of Texas v. Norwood, 418 S.W.3d 566 (Tex. 2013), and Wood v. HSBC Bank USA, N.A., 505 S.W.3d 542 (Tex. 2016), show how seriously Texas courts take these requirements.
  3. Online notarization. Confirm the notary holds an online commission and the certificate notes the online act.
  4. Record promptly. Texas protects later buyers for value without notice, and possession or inquiry facts can give notice. Don't rely on the record alone when someone other than the seller is in possession.

Citations

3. Securing Future Advances

Plain English

Texas has no general future-advance statute like many Southeastern states. On the title side, Texas handles advances through T-3 down-date endorsements on interim construction binders and loan policies, and the T-35 Revolving Credit Endorsement for revolving loans.

Key Rules

  • Priority vs. mechanic's liens (Tex. Prop. Code § 53.123(b)). A deed of trust in existence at the time of inception isn't affected by the mechanic's lien. Recording before inception is what protects the construction lender.
  • Interim construction binders (Basic Manual, Form T-13; Rate Rule R-13). A Loan Title Policy Binder on Interim Construction Loan may be used only for interim construction loans to an original contractor who is also the record owner, when a permanent loan policy is expected (Rule P-16). It runs for one year and can be extended in 6-month periods up to 36 months; the premium equals the minimum basic premium, plus $25 per extension (R-13). At each periodic construction advance it can be brought forward with a T-3 endorsement (T-3 Endorsement Instruction VII).
  • Revolving credit (Form T-35). Insures the validity and priority of the insured mortgage as security for each advance, with listed exceptions: post-bankruptcy advances, taxes and assessments arising after Date of Policy, some federal tax lien timing, environmental liens, and usury or consumer credit claims.
  • Home equity lines of credit have their own constitutional limits (Tex. Const. art. XVI, § 50(t)): each advance must be at least $4,000; no credit card, debit card or similar device may be used to draw; fees are charged only when the line is opened; the maximum principal plus other homestead debt is subject to the 80% limit; and the lender can't unilaterally amend the terms.

Practice Points

  1. Down-date each advance. On an interim construction loan, search the record before each advance and issue a T-3 endorsement under the Basic Manual. Don't extend coverage to an advance you haven't down-dated.
  2. Revolving loans. Use the T-35 and read its exclusions with the lender. Advances after the borrower files bankruptcy are not covered.
  3. Future-advance clauses. Confirm the deed of trust clearly secures future advances and that the advances were within the parties' contemplation. Treat optional advances made after notice of an intervening lien as a priority question for underwriting.

Citations

4. Subdivision Statutes and Regulations

Plain English

In Texas, an owner who divides a tract into two or more parts to lay out lots or streets needs a plat, whether the land is inside a city or its extraterritorial jurisdiction (Local Gov't Code Chapter 212) or in the county outside city limits (Chapter 232). You can't avoid the plat requirement by using a metes-and-bounds deed or a contract for deed. Inside city jurisdiction, divisions into parts larger than five acres with access and no public improvements are exempt. The practical enforcement tool is utilities: utilities can't connect land that lacks a plat-compliance certificate. A recorded plat also sets the stage for restrictions: an HOA may argue that a general plan binds later phases even after a defective annexation, and in Encino Ranch (2026) a court let that kind of claim go forward.

Key Rules

  • City plat requirement (Tex. Loc. Gov't Code § 212.004). Applies within city limits and the ETJ. A division includes one made by metes and bounds, contract for deed, or any other method. Exception: parts greater than five acres, each with access, and no public improvement dedicated.
  • Plat certificates (§ 212.0115). The approving authority issues a certificate on approval and, on request, determines whether a plat is required and whether it has been approved.
  • Utility connection (§ 212.012). Listed utilities may not serve or connect land without a § 212.0115 certificate, subject to exceptions.
  • County plat requirement (§ 232.001). Outside city limits, a division into two or more parts to lay out lots or streets needs a plat, again regardless of method. The plat must be acknowledged like a deed and filed.

Filed case notes

  • Encino Ranch HOA v. Santos, No. 04-24-00699-CV (Tex. App.—San Antonio Jan. 7, 2026): an HOA's claim that later phases were bound by the original restrictions under implied reciprocal negative easements, after a defective annexation, was not barred by limitations. The 4-year period ran from June 2019, when owners refused to sign annexation consents, so the 2020 suit was timely. The court did not decide whether the restrictions actually bind those lots.

Practice Points

  1. Look for unplatted splits. A legal description carved out of a larger tract by metes and bounds (especially under five acres, or in an ETJ) raises a platting question. Ask for the § 212.0115 determination or plat certificate.
  2. Utility service is a clue. No utility connection on an older split can signal a plat problem.
  3. Phased subdivisions. Read every phase's restrictions and annexation documents. A botched annexation doesn't settle the question: an HOA may still claim the restrictions bind the lot under a general plan, as in Encino Ranch.
  4. T-19 coverage on residential loans speaks to restriction violations and encroachments. Make sure the survey and plat support it.

Citations

5. Title Premium Rates

Plain English

Texas is the best-known promulgated rate state. The Commissioner of Insurance fixes the premium for every policy and form, and no company or agent may charge a different rate. Rebates and discounts are prohibited. Everything lives in the Basic Manual of Rules, Rates and Forms: the insuring forms (Texas T-forms), the Rate Rules (R-1 to R-35+), and the Procedural Rules (P-rules). Texas uses its own forms. The owner's policy is the T-1 (T-1R for 1-4 family residential), the loan policy is the T-2, and the commitment is the T-7, with Texas endorsements (T-19, T-17, T-28, T-30, T-35, T-36, T-42, and others) in place of ALTA endorsement numbers. After a rate hearing, TDI ordered a 6.2% reduction in basic premium rates, effective March 1, 2026.

Key Rules

  • Promulgation (Tex. Ins. Code § 2703.151). The Commissioner fixes and promulgates the premium rates for title policies and other prescribed forms. A premium may not be charged at a rate different from the promulgated rate (reinsurance excepted).
  • Uniform rules (§ 2703.001). Title insurers operate under the Commissioner's uniform rules on policy forms, premiums, and underwriting standards. Coverage issued in violation is invalid.
  • Rate changes (§ 2703.202). A promulgated rate can be changed only after a public hearing. Companies, qualifying agent associations, the Office of Public Insurance Counsel, and other interested persons may request one.
  • Statistical reporting (§ 2703.153). Companies and agents submit annual statistical reports used to set rates.
  • Current rates. Commissioner's Order No. 2025-9697 (Dec. 2025) cut basic premium rates 6.2%, effective March 1, 2026. The order's Exhibit A replaces the rate pages in the Basic Manual. Under the new table, the basic premium for a $100,000 policy is $780, and amounts over $100,000 are computed by formula (for $100,001–$1,000,000: $780 + 0.00494 × the amount over $100,000).
  • Rebates prohibited (Tex. Ins. Code § 2502.051).
  • Policy forms. T-1, T-1R, T-2, and related forms were updated effective Nov. 1, 2024.

Practice Points

  1. Know the T-form crosswalk. Lenders' instructions written in ALTA numbers must be translated to the Texas equivalent (for example, ALTA 9-series restrictions coverage maps to the T-19 family). If no Texas form exists, the coverage generally can't be given (Tex. Ins. Code § 2703.001). Ask underwriting about any requested coverage that has no Texas form.
  2. Survey amendment. Under Rate Rule R-16, amending the area-and-boundary exception costs $0 in a loan policy. In an owner's policy it costs 5% of the basic premium for residential property (at least $20) or 15% for other property.
  3. No rebates, no gifts. Marketing and inducement limits under Chapter 2502 apply to agents and companies.

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Texas has no transfer tax and no mortgage tax; a 2015 constitutional amendment bars any new real estate transfer tax. Texas is also a nondisclosure state. County clerks charge recording fees only.

Key Rules

(a) Deed transfer, conveyance or excise tax

  • None. Tex. Const. art. VIII, § 29 (adopted 2015) bars any law enacted after January 1, 2016 that imposes a tax on a transfer of fee-simple title to real property.

(b) Mortgage, indebtedness or intangible tax

  • None. Texas has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).

(c) Other recording taxes and fees

  • County clerk recording fees (Local Gov't Code § 118.011): $5 for the first page and $4 for each additional page of real property records, plus county-adopted records fees (records management and preservation up to $10, records archive up to $10, records technology $2).

Practice Points

  1. Collect recording fees only.

Citations

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