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Notice from Derivative Claimant
to Owner and Original Contractors
[Tex. Prop. Code 53.056 - Certified or Registered Mail]

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WARNING: This form is for Texas based projects only,
and may not meet the requirements of other states.
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[Sender's name, address, and telephone number]

[Date]

[Owner name and address]

[Contractor name and address]

NOTICE OF UNPAID BALANCE AND DEMAND FOR
PAYMENT FOR LABOR PERFORMED AND MATERIALS DELIVERED

Identification of Parties and Claim

Owner: __________________________
Original Contractor: ______________
Claimant: _______________________
Amount of Claim: $_______________

Gentlemen:

This notice pertains to unpaid amounts owed to [Name of claimant] by [Name of debtor].

Pursuant to Texas Property Code 53.056, you are hereby notified that the attached invoices and statements are true and correct copies of invoices and statements submitted by [Name of claimant] to [Name of debtor], for labor performed and materials supplied and delivered to [Name of debtor] during the months of _____________, 20___, in connection with the following referenced improvements to owner's real property:

Project name: _______________________________________

Address of project: ___________________________________

The amount of $___________ is now unpaid on this account.

You are further notified that if this account remains unpaid, you may be personally liable and your property may subjected to a lien unless you withhold payments from your contractor, an amount necessary to pay this claim or unless this claim is otherwise paid or settled.

[Name of claimant] hereby makes demand on you for the payment of $______, the amount due on the attached statements and invoices.

Sincerely,



[Name of claimant and signature]

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STATUTORY SOURCES

53.056. Derivative Claimant: Notice to Owner or Original Contractor

(a) Except as provided by Subchapter K, [FN1] a claimant other than an original contractor must give the notice prescribed by this section for the lien to be valid.

(b) If the lien claim arises from a debt incurred by a subcontractor, the claimant must give to the original contractor written notice of the unpaid balance. The claimant must give the notice not later than the 15th day of the second month following each month in which all or part of the claimant's labor was performed or material delivered. The claimant must give the same notice to the owner or reputed owner and the original contractor not later than the 15th day of the third month following each month in which all or part of the claimant's labor was performed or material or specially fabricated material was delivered.

(c) If the lien claim arises from a debt incurred by the original contractor, the claimant must give notice to the owner or reputed owner, with a copy to the original contractor, in accordance with Subsection (b).

(d) To authorize the owner to withhold funds under Subchapter D, [FN2] the notice to the owner must state that if the claim remains unpaid, the owner may be personally liable and the owner's property may be subjected to a lien unless:

(1) the owner withholds payments from the contractor for payment of the claim; or

(2) the claim is otherwise paid or settled.

(e) The notice must be sent by registered or certified mail and must be addressed to the owner or reputed owner or the original contractor, as applicable, at his last known business or residence address.

(f) A copy of the statement or billing in the usual and customary form is sufficient as notice under this section.

53.057. Derivative Claimant: Notice for Contractual Retainage Claim

(a) A claimant may give notice under this section instead of or in addition to notice under Section 53.056 or 53.252 if the claimant is to labor, furnish labor or materials, or specially fabricate materials under an agreement with an original contractor or a subcontractor providing for retainage.

(b) The claimant must give the owner or reputed owner notice of the retainage agreement not later than the 15th day of the second month following the delivery of materials or the performance of labor by the claimant that first occurs after the claimant has agreed to the contractual retainage. If the agreement is with a subcontractor, the claimant must also give notice within that time to the original contractor.

(c) The notice must contain:

(1) the sum to be retained;

(2) the due date or dates, if known; and

(3) a general indication of the nature of the agreement.

(d) The notice must be sent by registered or certified mail to the last known business or residence address of the owner or reputed owner or the original contractor, as applicable.

(e) If a claimant gives notice under this section and Section 53.055 or, if the claim relates to a residential construction project, under this section and Section 53.252, the claimant is not required to give any other notice as to the retainage.

53.058. Derivative Claimant: Notice for Specially Fabricated Items

(a) Except as provided by Subchapter K, [FN1] a claimant who specially fabricates material must give notice under this section for the lien to be valid.

(b) The claimant must give the owner or reputed owner notice not later than the 15th day of the second month after the month in which the claimant receives and accepts the order for the material. If the indebtedness is incurred by a person other than the original contractor, the claimant must also give notice within that time to the original contractor.

(c) The notice must contain:

(1) a statement that the order has been received and accepted; and

(2) the price of the order.

(d) The notice must be sent by registered or certified mail to the last known business or residence address of the owner or the reputed owner or the original contractor, as applicable.

(e) In addition to notice under this section, the claimant must give notice under Section 53.056 if delivery has been made or if the normal delivery time for the job has passed.

(f) The lien of a claimant who accepts an order but fails to give notice under this section is valid as to delivered items if the claimant has given notice under Section 53.056.

(g) If a retainage agreement consists in whole or part of an obligation to furnish specially fabricated materials and the claimant has given notice under Section 53.057, the claimant is not required to give notice under this section.
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NOTE:The foregoing form and information comes from statutes applicable to only non-public projects, and might not apply to improvements to homesteads. The information is intended as a tool only, and is not to be interpreted as creating an attorney-client relationship or giving legal advice. To be certain that you are taking proper steps to protect your lien rights, you should consult your attorney.

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