Tex. Codes » Property Code · TITLE 10. MISCELLANEOUS BENEFICIAL PROPERTY INTERESTS · SUBTITLE B. FIDUCIARIES · CHAPTER 162. CONSTRUCTION PAYMENTS, LOAN RECEIPTS, AND MISAPPLICATION OF TRUST FUNDS
Texas Codes

Tex. Prop. Code § 162.003 (2026)

Beneficiaries Of Trust Funds

✓ current as of May 2026
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Sec. 162.003. BENEFICIARIES OF TRUST FUNDS. (a) A person who is an artisan, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state, or that person's qualified assignee under Section 162.0031, is a beneficiary of any trust funds paid or received in connection with the improvement.

(b) A property owner is a beneficiary of trust funds described by Section 162.001 in connection with a residential construction contract, including funds deposited into a construction account described by Section 162.006.

Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 2, eff. Sept. 1, 1997.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 3, eff. September 1, 2009.

Acts 2025, 89th Leg., R.S., Ch. 485 (S.B. 841), Sec. 1, eff. September 1, 2025.

Notes of Decisions
Cited in 39 cases (7 in the last 5 years), 1986–2025 · leading case: Vast Constr., LLC v. CTC Contractors, LLC, 526 S.W.3d 709 (Tex. App. 2017).
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Vast Constr., LLC v. CTC Contractors, LLC, 526 S.W.3d 709 (Tex. App. 2017). “Tex. Prop. Code § 162.003; Dealers Elec. Supply Co.”
Hofland v. Elgin-Butler Brick Co., 834 S.W.2d 409 (Tex. App. 1992). · cites it 2× “Suit was filed under Tex. PROP.Code Ann. § 162.003 (Vernon 1990), seeking recovery of the payments made to Border Brick by third parties who had purchased Elgin-Butler brick.”
Taylor Pipeline Constr., Inc. v. Directional Road Boring, Inc., 438 F. Supp. 2d 696 (E.D. Tex. 2006). “See Tex. Prop. Code Ann. § 162.003 (Vernon 1995 & Supp.”
Painter v. Momentum Energy Corp., 271 S.W.3d 388 (Tex. App. 2008). “Tex Prop. Code Ann. § 162.003. 6 . Tony Painter is the father of Appellant Dusty Ray Painter.”
Cunningham v. T & R Demolition, Inc. (In Re ML & Assocs., Inc.), 301 B.R. 195 (Bankr. N.D. Tex. 2003). ““An artisan, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state is a beneficiary of any trust fund paid or received in connection with…”
Monaco v. Monaco (In re Monaco), 514 B.R. 477 (Bankr. W.D. Tex. 2014). · cites it 2× “1, 2009 (amending Tex. Prop.Code Ann. § 162.003). Before 2009, beneficiaries under the statute included unpaid laborers and material men but not the owners who paid funds to the contractor.”
Choy v. Graziano Roofing of Texas, Inc., 322 S.W.3d 276 (Tex. App. 2009). “Tex. Prop.Code Ann. § 162.003 (Vernon 2007).”
Sommers v. Katy Steel Co. (In re Contractor Tech., Ltd.), 343 B.R. 573 (Bankr. S.D. Tex. 2006). “003 governs beneficiaries of such a trust and states, in relevant part: An artisan, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state…”
Kahkeshani v. Hann (In re Hann), 544 B.R. 326 (Bankr. S.D. Tex. 2016). “See Tex. Prop.Code Ann.§ 162.003(b). Consequently, none of the amendments change the Fifth Circuit’s analysis in Boyle, that civil liability for violating the Texas Construction Trust Fund Act is an insufficient basis for finding a nondisehargeable defalcation under 11 U.”
Matter of Cont'l Airlines, Inc., 134 B.R. 536 (Bankr. D. Del. 1991). “10 Tex. Prop.Code §§ 162.003, 162.004 (1991).”
Holley v. NL Indus./NL Acme Tool Co., 718 S.W.2d 813 (Tex. App. 1986). “Tex.Prop. Ann.Code § 162.003 (1984). Finally, appel- *814 lee asserted that Holley misapplied the trust funds.”
Lampman v. Lee (In re Lee), 230 B.R. 810 (Bankr. N.D. Tex. 1999). “Tex. Prop. Code Ann. § 162.003 (Vernon 1995) states: An artist, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state is a beneficiary of…”
Show all 39 citing cases →
— Tex. Prop. Code § 162.003(a) — 1 case
Trident Homes, Inc. & Ryan Strickland v. Ramesh Kainthla & Neetu Kainthla (Tex. App. 2025).
— Tex. Prop. Code § 162.003(b) — 5 cases
Kahkeshani v. Hann (In re Hann), 544 B.R. 326 (Bankr. S.D. Tex. 2016). “See Tex. Prop.Code Ann.§ 162.003(b). Consequently, none of the amendments change the Fifth Circuit’s analysis in Boyle, that civil liability for violating the Texas Construction Trust Fund Act is an insufficient basis for finding a nondisehargeable defalcation under 11 U.”
Monaco v. Monaco (In re Monaco), 514 B.R. 477 (Bankr. W.D. Tex. 2014). “1, 2009 (amending Tex. Prop.Code Ann. § 162.003). Before 2009, beneficiaries under the statute included unpaid laborers and material men but not the owners who paid funds to the contractor.”
WeKnow Tech., Inc. v. Joe Hayes (Tex. App. 2018).
City Ctr. Wichita Falls, LLC v. Harwell, Jr (Bankr. W.D. Tex. 2024).
Nooruddin (Bankr. N.D. Tex. 2025).
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