86R6302 BEE-F
By: Romero, Jr. H.B. No. 2024
A BILL TO BE ENTITLED
AN ACT
relating to the survival of a mechanic's retainage lien after the
foreclosure of a lien securing a construction loan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 53, Property Code, is
amended by adding Section 53.125 to read as follows:
Sec. 53.125. SURVIVAL OF RETAINAGE LIEN AFTER CERTAIN
FORECLOSURES. (a) A person who purchases property that is sold
due to the foreclosure of a lien that secures a financing agreement
or loan to pay for the construction or repair of an improvement to
real property takes the property subject to an unreleased retainage
lien established under Section 53.105.
(b) For purposes of this section, "retainage" includes
retainage under Subchapter E.
SECTION 2. The changes in law made by this Act apply only to
a lien related to an original contract entered into on or after the
effective date of this Act. A lien related to an original contract
entered into before the effective date of this Act is governed by
the law applicable to the lien immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2019.