Can I really lose my Texas home over a remodeling contract?

Answers (1)

1. LE

   LokalMatch EditorialLokalMatch editorial

   Answered September 24, 2026

   It is serious, and Texas requires that warning precisely because it is. Any contract you sign for work on your homestead has to carry this notice: you and your contractor are responsible for meeting the terms and conditions of the contract, and if you sign it and fail to meet them, you may lose your legal ownership rights in your home.

   Signing a homestead improvement contract lets the contractor place a lien on the homestead. If you then fail to make the payments, the company can take your home. That is the plain reading and the Texas Attorney General states it in those words.

   There is a formality that protects you, and it is worth insisting on. Where a lien on the home is involved, a notary — someone other than the salesperson — must be present to witness you signing the document that creates it. A salesperson with no notary, or one who offers to have it notarized later, is a warning you get for free.

   A second exposure runs through people you never hired. Under Texas law, if a subcontractor or supplier who furnished labor or materials is not paid, your property may be subject to a lien for the unpaid amount — even though your contract was with the contractor and not with them.

Answers come from pros and are reviewed by LokalMatch before they’re published. They’re general information — for regulated or safety-critical work, have a licensed professional assess your situation.

Sources

Where the facts on this page come from.

1. 1

   How to Avoid Home Improvement Scams — Office of the Attorney General of Texas (accessed September 24, 2026)