Texas Contracting Law, Liens & Contracts
Even without a state license, Texas contractors are bound by state statutes that govern payment security and homeowner disputes. This chapter focuses on the Texas mechanic's lien system and the Residential Construction Liability Act.
Mechanic's liens under Property Code Chapter 53
Chapter 53 of the Texas Property Code creates lien rights for contractors, subcontractors, and material suppliers on private projects. It defines who may claim a lien, the notices that must be sent to the owner (and, for subcontractors, to the original contractor), and the deadlines for filing a lien affidavit with the county clerk. Deadlines are strict — for a non-residential project, an original contractor generally must file by the 15th day of the fourth calendar month after the work is completed, terminated, or abandoned, and residential projects use a shorter third-month deadline.
Retainage and homestead protection
Chapter 53 requires the owner to withhold 10% retainage during the job and for 30 days after completion, creating a fund for claimants. Texas also gives strong constitutional homestead protection: to obtain an enforceable lien against a homestead, a contractor generally must have a written contract signed by both spouses, executed before work begins, and filed in the county records. Failing these homestead formalities can void the lien.
Residential Construction Liability Act (RCLA)
The Residential Construction Liability Act, Chapter 27 of the Property Code, governs disputes between homeowners and contractors over construction defects in residences. Before suing, the homeowner must give the contractor written notice of the claimed defect and a reasonable opportunity to inspect and make a written offer to repair or settle. RCLA is designed to give the contractor a chance to fix problems and to limit certain damages if a reasonable repair offer is made.
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State-specific details
State exam facts
Does Texas require a state contractor license?
No. Texas has NO statewide general-contractor license and no state general-contractor exam. General contracting is governed by each city's and county's local permitting and registration rules, so requirements vary by jurisdiction.
Who licenses contractors in Texas?
Individual trades are regulated by the Texas Department of Licensing and Regulation (TDLR) and the Texas State Board of Plumbing Examiners (TSBPE) — for example electricians, HVAC, and plumbers hold state trade licenses — but general building contractors register locally with the city or county where they work.
What Texas laws still apply to contractors without a state license?
Even without a state GC license, contractors are bound by Texas mechanic's lien law (Property Code Chapter 53) and the Residential Construction Liability Act (Property Code Chapter 27), plus local building codes and permits.
Sources: https://www.tdlr.texas.gov
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