Texas Ends Lien Waiver Notarization Mandate, Making Digital Exchange of Lien Waivers the Future

One of only three states in the US that required all lien waivers be notarized, the state of Texas has officially done away with its lien waiver notarization requirement. In summer 2021, Texas Governor Greg Abbott signed Senate Bill HB 2237, which eliminates the notarization requirement for lien waivers, into law and the changes will be effective beginning January 1, 2022.

This move significantly reduces the red tape required to finalize lien waivers in Texas and gives Texas construction professionals the freedom to convert to a fully digital documentation system.

By removing the notarization requirement from Texas Property Code Section 53.281(b), Texas is allowing construction professionals to dramatically reduce the administrative burden of obtaining lien waivers and leverage modern technology to increase efficiency. Built’s solution for lien waiver management enables contractors to create and send lien waivers in bulk, digitally.

Many construction jobs necessitate hundreds of lien waivers, and typically general contractors and home builders are juggling multiple jobs at once, using their preferred cast of crewmembers on every different site. Subcontractors may receive hundreds of lien waivers over the course of a construction project which can be burdensome and costly to administer.

Doing away with the notarization requirement not only means less time spent printing and notarizing documents, but it also allows construction professionals to transition to a completely digital lien waiver process.

Construction professionals in Texas can now look ahead to adopting a faster, more streamlined fully digital billing process. Built’s Construction Payment Management System allows construction professionals to exchange required documents electronically (Lien Waiver Management), make and receive payments (Built Pay), track receipt of compliance documents (Compliance Tracking), and purchase products like insurance (Built Club). Built Construction Payment Management System creates one centralized system for managing documentation, payments and discounts online.

Now construction professionals in Texas will be able to use Built’s Compliance Tracking to collect and store W-9s, gather certificates of insurance, and to create, send, track, and manage each and every lien waiver—with no notarization necessary. They’ll be able to electronically remit payment to their subcontractors in a timely fashion using Built Pay, and they’ll be able to use Built Club to rack up on savings.

Having done away with notarization, Texans can expect to spend far less time on billing so they can focus on building.

DISCLAIMER: This article is intended to be informational and nothing in this article is intended to be legal advice. Readers should engage a licensed attorney to address specific legal questions.

Topics: Lien Waivers