Texas HB3290 amends the Property Code to extend the time period for which funds must be reserved under a construction contract for mechanic's lien.

HB3290 amends Section 53.101 of the Texas Property Code to change the time period for which funds must be reserved under a construction contract for the benefit of mechanic's lien claimants. The owner must reserve 10 percent of the contract price or the value of the work for 30 days after the work is completed, or until a certificate of occupancy is issued or the improvement is first used for its intended purpose, whichever is later. This change applies only to contracts entered into after the effective date of the Act, which is September 1, 2025.

Texas HB3290 amends the Property Code to extend the time period for which funds must be reserved under a construction contract for mechanic's lien.

HB3290 amends Section 53.101 of the Texas Property Code to change the time period for which funds must be reserved under a construction contract for the benefit of mechanic's lien claimants. The owner must reserve 10 percent of the contract price or the value of the work for 30 days after the work is completed, or until a certificate of occupancy is issued or the improvement is first used for its intended purpose, whichever is later. This change applies only to contracts entered into after the effective date of the Act, which is September 1, 2025.