Pre-lien Notice / Notice to Owner

TEXAS MONTHLY PRE-LIEN NOTICE

(Notice to Owner and/or Original Contractor – Tex. Prop. Code § 53.056)

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

1. Title. TEXAS MONTHLY PRE-LIEN NOTICE / NOTICE TO OWNER AND ORIGINAL CONTRACTOR.
2. Claimant. [CLAIMANT LEGAL NAME], a [STATE] [ENTITY TYPE] (“Claimant”).
3. Owner. [OWNER LEGAL NAME], a [STATE] [ENTITY TYPE] (“Owner”).
4. Original Contractor. [CONTRACTOR LEGAL NAME], a [STATE] [ENTITY TYPE] (“Original Contractor”).
5. Project. “[PROJECT NAME / DESCRIPTION]” located at [PROJECT ADDRESS], [CITY], Texas, [ZIP] (“Project”).
6. Property Legal Description. [FULL METES-AND-BOUNDS OR LOT/BLOCK LEGAL DESCRIPTION] (“Property”).
7. Effective Date. This Notice is effective as of [DATE OF MAILING] (“Effective Date”).
8. Governing Law. This Notice is governed by the lien laws of the State of Texas, including Tex. Prop. Code ch. 53 (“Texas Property Code”).

II. DEFINITIONS

For purposes of this Notice, capitalized terms have the meanings set forth below.

A. “Labor and/or Materials” means the labor performed and materials, machinery, or specially fabricated items supplied by Claimant to the Project as further described in Section III.

B. “Notice Deadline” means the 15th day of the [SECOND/THIRD] calendar month after the month in which Labor and/or Materials were last furnished by Claimant, as prescribed by Tex. Prop. Code § 53.056(a).

C. “Unpaid Balance” means the sum of $[AMOUNT] presently due and owing to Claimant for the Labor and/or Materials.

III. OPERATIVE PROVISIONS

3.1 Statutory Notice. Pursuant to Tex. Prop. Code § 53.056, Claimant hereby gives notice of its unpaid claim and potential lien against the Property.

3.2 Labor and/or Materials Furnished. Claimant furnished Labor and/or Materials to the Project in the month(s) of [MONTH(S), YEAR], under an agreement with [CONTRACTING PARTY NAME (e.g., Subcontractor or Original Contractor)]. A detailed itemization is attached as Exhibit A.

3.3 Amount Due. As of the Effective Date, the Unpaid Balance of $[AMOUNT] remains due and unpaid, despite Claimant’s demand for payment.

3.4 Reservation of Lien Rights. If the Unpaid Balance is not paid within the statutory period, Claimant intends to file an affidavit claiming a mechanic’s and materialman’s lien on the Property in accordance with Tex. Prop. Code § 53.052 et seq.

3.5 Statutory Warning. “If a subcontractor or supplier who furnishes materials or labor for construction of improvements on your property is not paid, your property may be subject to a lien for the unpaid amount. Claimant may not assert this lien unless it sends you this notice.” See Tex. Prop. Code § 53.252(b) (emphasis added).

IV. REPRESENTATIONS & WARRANTIES

4.1 Claim Accuracy. Claimant represents that, to the best of its knowledge and belief, the information contained in this Notice is true, correct, and complete and that the Unpaid Balance is justly due.

4.2 Proper Tier Status. Claimant warrants that it is a [FIRST-TIER/SECOND-TIER] subcontractor or supplier entitled to lien rights under the Texas Property Code.

4.3 No Waiver. Claimant has not executed any lien waiver or release that would preclude the assertion of this claim.

V. COVENANTS & RESTRICTIONS

5.1 Payment Covenant. Owner and Original Contractor covenant to cause payment of the Unpaid Balance to Claimant on or before [PAYMENT DEADLINE DATE] in order to avoid lien filing.

5.2 Notice of Dispute. Should Owner or Original Contractor dispute any portion of the Unpaid Balance, they shall provide written notice of the specific disputed amounts and the factual basis for the dispute within five (5) business days of receipt of this Notice.

VI. DEFAULT & REMEDIES

6.1 Event of Default. Failure to remit the Unpaid Balance (or any undisputed portion thereof) by the Payment Deadline constitutes an Event of Default.

6.2 Remedies. Upon an Event of Default, Claimant may:
a. Record a mechanic’s lien affidavit under Tex. Prop. Code § 53.052;
b. Initiate suit to foreclose the lien and recover the Unpaid Balance, interest, court costs, and reasonable attorney’s fees per Tex. Prop. Code § 53.156; and
c. Pursue any other remedies available at law or in equity.

VII. RISK ALLOCATION

7.1 Limitation of Liability. Claimant’s aggregate recovery is limited to the lesser of (a) the reasonable value of the Labor and/or Materials furnished, or (b) the contract price allocable to such Labor and/or Materials.

7.2 Force Majeure. Delays in performance caused by events beyond Claimant’s reasonable control shall not impair, limit, or waive Claimant’s lien rights.

VIII. DISPUTE RESOLUTION

8.1 Governing Law. This Notice and any related dispute shall be governed by the laws of the State of Texas, without regard to conflict-of-laws principles.

8.2 Forum Selection. The parties consent to the exclusive jurisdiction of the state courts of competent jurisdiction located in the county where the Property is situated for any action arising out of or relating to this Notice or the underlying claim.

8.3 Injunctive Relief. Claimant reserves all rights to seek injunctive or equitable relief necessary to preserve and enforce its lien rights.

IX. GENERAL PROVISIONS

9.1 Amendments and Waivers. Any amendment or waiver of this Notice must be in writing and signed by Claimant.

9.2 Severability. If any provision of this Notice is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9.3 Integration. This Notice, together with Exhibit A, constitutes the entire notice required under Tex. Prop. Code § 53.056 and supersedes all prior correspondence regarding the unpaid claim.

9.4 Counterparts; Electronic Signature. This Notice may be executed in counterparts and transmitted electronically, each of which shall be deemed an original.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned Claimant has executed and mailed this Notice on the Effective Date stated above.

________________________________________
[CLAIMANT LEGAL NAME]
By: _________________________________
Name: [SIGNATORY NAME]
Title: [TITLE]
Date: [DATE]

EXHIBIT A

Itemized Statement of Labor and/or Materials

[END OF DOCUMENT]