Texas House Bill HB1860

Texas 2011 - 82nd Regular

• Out of House Committee: 4/18/11
• Introduced: 2/25/11
• Refer: 3/7/11
• Report Pass: 4/13/11

Caption

Relating to waiver of priority for removables in certain mechanic's, contractor's, or materialman's lien claims.

Impact

The implementation of HB 1860 is poised to streamline the lien approval process and provide property owners and title insurers a mechanism to challenge or confirm lien claims for removable materials. By requiring lien claimants to respond to notices regarding their claims within a specified timeframe, the bill seeks to prevent potential delays and disputes in property transactions stemming from unclear or unverified liens. This clarity is intended to facilitate smoother real estate dealings, particularly in scenarios involving foreclosures.

Summary

House Bill 1860 introduces significant amendments to the Texas Property Code specifically related to mechanic's liens. The bill defines 'removable' materials—those that can be removed without damaging the land or improvements. It aims to clarify the process by which property owners or title companies can request confirmation from lien claimants regarding claims for removables. This is particularly relevant for situations involving foreclosed properties or sales arising from foreclosures, ensuring that lien claimants provide clear documentation for their claims.

Contention

Notable points of contention around HB 1860 may include concerns from construction professionals and lien claimants regarding the implications of the waiver on their rights. Critics may argue that the bill could weaken the protections traditionally afforded to lien claimants, particularly smaller contractors or suppliers, by creating an environment where their claims can be easily challenged or disputed. Moreover, the enforced requirement to confirm claims may disproportionately affect those with fewer resources to comply, potentially leading to a loss of prioritized claims that would otherwise have been protected under traditional lien laws.