SB1530 modifies the time period for which funds must be reserved under construction contracts for mechanic's lien claimants in Texas.

SB1530 amends Texas Property Code to change the duration for which funds must be reserved under a construction contract for the benefit of mechanic's lien claimants. For contracts entered into after the bill's effective date, the owner must reserve funds for the earlier of 31 days after work completion or 61 days after a certificate of occupancy is issued or the improvement is first used for its intended purpose. The changes apply only to contracts entered into after the bill's effective date of September 1, 2025.

SB1530 modifies the time period for which funds must be reserved under construction contracts for mechanic's lien claimants in Texas.

SB1530 amends Texas Property Code to change the duration for which funds must be reserved under a construction contract for the benefit of mechanic's lien claimants. For contracts entered into after the bill's effective date, the owner must reserve funds for the earlier of 31 days after work completion or 61 days after a certificate of occupancy is issued or the improvement is first used for its intended purpose. The changes apply only to contracts entered into after the bill's effective date of September 1, 2025.