Texas lien waivers: forms, rules and retainage.
What Texas law requires of lien waivers and releases, the forms contractors and suppliers use, and how much retainage can be held, with the statute behind each point.
Checked against the Texas statutes on 2026-11-13 · General information, not legal advice
In short
Texas requires one of four statutory waiver forms in Property Code section 53.284: conditional and unconditional, each for progress and final payment. A waiver that doesn't substantially follow one of them is unenforceable unless you were actually paid in full. Since the HB 2237 reforms took effect for contracts from January 1, 2022, the forms no longer need notarizing. Agreements to waive lien rights in advance are void, with a narrow exception for some residential contracts.
The Texas waiver forms set by statute.
Section 53.284 sets out the four forms. A conditional release takes effect only when the check is endorsed and paid by the bank. The unconditional forms must carry a bold notice in type at least 10-point and as large as the largest type on the page. Under section 53.283, no one may require an unconditional waiver until you've received good and sufficient funds.
| Form | Type | When it's used |
|---|---|---|
| Conditional Waiver and Release on Progress Payment | Conditional · Progress payment | Signed with each pay application; effective once the progress payment clears. |
| Unconditional Waiver and Release on Progress Payment | Unconditional · Progress payment | After you've received the progress payment in good funds. |
| Conditional Waiver and Release on Final Payment | Conditional · Final payment | With the final billing; effective once final payment clears. |
| Unconditional Waiver and Release on Final Payment | Unconditional · Final payment | After final payment, including retainage, is received in good funds. |
What Texas law requires.
Statutory form or nothing
A waiver releases claims only if it substantially complies with a section 53.284 form, is signed by the claimant or its agent, and, for a conditional release, there's evidence of payment (53.281(b)). Other waiver language is unenforceable unless the claimant was actually paid in full (53.282).
No notary since 2022
HB 2237 removed the notarization requirement for contracts entered into on or after January 1, 2022. A county clerk may still ask for a notary to record a document, so check locally before recording.
Advance waivers are void
An agreement waiving the right to file or enforce a lien is void as against public policy (53.286). The exception is a waiver written into the original contract or subcontract for a single-family house, townhouse or duplex before work starts; it doesn't apply to material-only suppliers.
Owner's 10% holdback
Separately from contract retainage, Texas requires the owner to hold back 10% of the contract price for 30 days after completion to protect subcontractor and supplier claims (53.101).
How much can be held back in Texas.
| Private projects | No statutory percentage cap on contract retainage that we could confirm. The owner must also keep the statutory 10% holdback for 30 days after completion (Property Code 53.101). Late payment under the prompt-pay chapter accrues 1.5% a month (Property Code 28.004). |
|---|---|
| Public projects | 10% of the contract price, or 5% for contracts of $5 million or more (10% for dams), under Government Code 2252.032. |
| Release | Public projects: remaining retainage, plus any interest earned on it, is paid on completion; if it's withheld over a dispute, the owner must give written notice. HB 692 (2021) allows partial release on public projects. |
Source: Texas Government Code 2252.032 (statute text). Contracts can set lower retainage; read yours alongside the statute.
Collecting waivers without the paper chase.
On a busy job, a general contractor collects a conditional waiver from every subcontractor and supplier with each pay application, swaps it for an unconditional one once payment clears, and tracks retainage owed on every subcontract until final completion. Missing one waiver can hold up the owner's payment for everyone.
Agenbord Build for general contractors is designed to request, collect and match waivers to each payment and keep retainage per subcontract, so the next pay application isn't waiting on paperwork. It's in early access. See also our guides to construction pay applications and retainage.
Texas lien waivers: common questions.
Do Texas lien waivers have to be notarized?
Not for contracts entered into on or after January 1, 2022. HB 2237 removed the notarization requirement from the statutory forms. A county clerk may still require notarization to record a document.
Can I use my own lien waiver form in Texas?
Not effectively. A Texas waiver releases lien claims only if it substantially complies with one of the four forms in Property Code section 53.284. Other waiver language is unenforceable unless the claimant was actually paid in full.
When does a Texas conditional waiver take effect?
When the check described in it is endorsed and paid by the bank. Until then, the conditional waiver doesn't release your lien rights.
Can a Texas general contractor demand an unconditional waiver before paying?
No. Section 53.283 bars anyone from requiring an unconditional waiver until the claimant has received good and sufficient funds.
Sources
- Texas Property Code 53.281 - Waiver and release requirements (statute text)
- Texas Property Code 53.284 - Statutory forms (statute text)
- Texas Property Code 53.282, 53.283 and 53.286 (statute text)
- Peckar & Abramson - Texas mechanic's lien law update (HB 2237)
- Texas Government Code 2252.032 - Public works retainage (statute text)
- Texas Legislature - official statutes site
General information about Texas law as checked on 2026-11-13, not legal advice. Lien law is technical and deadlines are strict; have a construction attorney review your forms and process.
