Texas Notice to Owner

First Tier Subcontractors – The letter required to serve notice is known as “Third Month Notice” a/k/a “Fund-Trapping Notice”. If the work of a subcontractor takes many months to complete, several of the letters might be sent, if payment is slow in coming. This must be followed by the Lien Affidavit. The deadline for sending this notice is the 15th day of the month, three (3) months after work or materials were provided, and for which payment has not been received. This notice is required to be sent via certified mail to the owner and original contractor.

Low Tier Subcontractors – There are a few letters required when your in the position one which is called “Second Month Notice” this must be sent to the original contractor, as well as sending a “Third Month Notice” to the owner and the original contractor. The Lien Affidavit must be filed as well.

What is a Third Month Notice

If you are a First Tier Subcontractor, if you have a contract with the original contractor, in order to protect your investment you must file your Notice no later than the 15th day of the month, three (3) months after work or materials were provided and for which payment has not been received. This notice will be sent via certified mail to the owner and the original contractor. Some refer to this letter as the “third month notice” while others refer to as the “fund-trapping notice”. It is important to remember that lien rights are not based on billing or payment dates, but dates of material delivery or work performances. See our “Third Month Notice Timetable”

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What is a Second Month Notice

If you are a Low Tier Subcontractor, being that you do not have a direct contract with the original contractor, you will need to notify the original contractor that you are supplying material or labor. This notice will put the original contractor on notice. If you still haven’t received payment then you will need to continue with sending out an additional notice known as “third month notice”, which will be sent to the owner and original contractor. There is a time frame unto which you must following in order to perfect your lien, the first notice “second month notice” must be sent via certified mail no later than the 15th day of the second month after supplying labor or materials that has not been paid for.

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