Texas Lien: A Complete Guide to Liens in the State

In Texas, a lien is a claim on property to make sure a debt is paid. If the debt is not paid, the creditor may use the property to recover what is owed. Because lien rules are different in every state, it is important to know how they work, how long they last, and how to remove them in Texas.

What Is a Lien in Texas?

Lien laws in Texas are found in different parts of the Texas Legal Code, including the Tax Code,Business and Commerce Code, Property Code, and the Texas Constitution. Once filed, a lien becomes part of the public record and serves as notice of a creditor’s claim against a property. Until the lien is released, it may prevent the property owner from selling or refinancing. For this reason, potential buyers often conduct a lien search before completing a purchase.

Types of Liens in Texas

In the Texas Legal Code, provisions are made for several types of liens, including those related to property, constitutional protection, business transactions, and taxes:

1. Mechanic’s, Contractor’s, or Materialmen’s Lien (Texas Property Code, Chapter 53)

This lien ensures that contractors and laborers are paid for work, services, or materials used to improve a property. If left unresolved, it can affect the property’s title and may even result in the foreclosure of the property.

2. Judgment Lien (Texas Property Code, Chapter 52)

This is a legal claim that attaches to a person’s land, home, or other real property after the court issues a money judgment. To turn the judgment into a lien, the creditor must file an abstract of judgment in the county where the real property is located.

3. UCC Secured Party Lien (Texas Business and Commerce Code, Title 1, Chapter 9)

In Texas, a UCC lien is created when a creditor files a UCC-1 Financing Statement with the Secretary of State to show that they have a legal claim on a debtor’s personal property. If the debtor does not pay the debt, the creditor may take or sell the property used as collateral.

4. Tax Lien (Texas Property Tax Code §32.01)

A tax lien is created automatically when a property owner does not pay taxes owed to state or local authorities. The lien attaches to the property and takes priority over most other claims. This lien allows the government to seize or sell the property to collect the unpaid taxes.

5. Homeowner Association (HOA) Lien (Texas Property Code, Chapter 209)

In Texas, an HOA lien is a legal claim that a Homeowner Association can place on a property when the owner fails to pay assessments or other obligations owed to the HOA.

How to Search for Liens in Texas

Lien records in Texas are public and may be searched through:

• County Clerk’s Offices: Each county in Texas maintains a County Clerk’s Office, where individuals can access deed records or use the office’s online portal to search for judgment liens.
• Texas Secretary of State: The secretary’s SOSDirect portal allows users to search USS-1 financing statements by debtor name.
• Title Companies or Attorney: Individuals who need a full lien history or are seeking to buy a property can perform a title search to uncover hidden liens.

A lien record often includes who holds the lien, how much is owed, when it was filed, and information about the property.

Lien Records in Major Texas Cities

In Texas, most lien records are filed at the county level. To locate these records, individuals need to search in the county where the property is situated:

• Houston (Harris County): Houston residents can use the Document Search Portal provided by the Harris County Clerk to find property and lien records.
• Dallas (Dallas County): Record seekers can conduct a quick search for lien filings at the Dallas County Clerk’s Office or through the Official Records Search.
• San Antonio (Bexar County): Information concerning liens recorded against a property in San Antonio can be accessed at the County Clerk’s Deeds Records Department. Alternatively, interested parties can find these records online through the county’s Official Records Search.
• Austin (Travis County): Individuals searching for liens in Travis County may consult the Recording Division of the County Clerk’s Office, which maintains all property-related documents for Austin and surrounding areas.
• Fort Worth (Tarrant County): The Tarrant County Clerk offers access to lien records through its Official Records Search portal.

How Long Does a Lien Stay on Property in Texas?

In Texas, the duration of a lien is dependent on its type and the law that governs it:

• Judgment Lien: It lasts for 10 years from the date the abstract judgment is recorded with the county clerk.
• Mechanic’s Lien: A claimant must file a lawsuit to enforce the lien within two years after the last day a lien affidavit is filed. Another option is that this lien must be enforced within a year after completion or abandonment of the project.
• Property Tax Lien: This type of lien does not have an expiry date and can remain valid until the taxes are paid in full.
• Mortgage Lien: This lien remains active until the mortgage loan is fully repaid and released.
• Tax Liens (State): Texas state tax liens remain valid for 10 years from the date of assessment.

Despite the debt being paid, a lien may remain active in public records if it is not released in the right way.

How to Remove a Lien in Texas

Some of the methods to remove a lien in Texas include:

1. Paying the Debt in Full: Once the lienholder is paid, it is necessary for them to issue and file a Release of Lien with the same office where the lien was initially recorded.
2. Negotiating a Settlement: Debtors can negotiate with the creditor to pay in installments until the debt is fully paid.
3. Challenge the Lien in Court: Property owners can file a motion to remove a lien if it is a false claim.
4. Bond Off the Lien: Property owners can post a surety bond with the court to remove a lien from the property and attach it to the bond instead.

In Texas, liens provide a legal way for creditors to collect debts while holding property owners accountable. Buyers, sellers, and lenders can prevent complications by understanding the lien types in Texas, their duration, and the steps to remove them.

Since the state has strict filing deadlines, it is helpful to work with a county clerk, title company, or attorney to make sure liens are handled in the proper way. This helps property owners keep clear titles and ensure smoother real estate purchases.