Tex. Codes » Property Code · TITLE 5. EXEMPT PROPERTY AND LIENS · SUBTITLE B. LIENS · CHAPTER 53. MECHANIC'S, CONTRACTOR'S, OR MATERIALMAN'S LIEN
Texas Codes

Tex. Prop. Code § 53.026 (2026)

Sham Contract

✓ current as of May 2026
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Sec. 53.026. SHAM CONTRACT.

(a) A person who labors or furnishes labor or materials under a direct contractual relationship with a purported original contractor is considered to be an original contractor for purposes of perfecting a mechanic's lien.

(b) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(2), eff. January 1, 2022.

Acts 1983, 68th Leg., p. 3537, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 3, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 4, eff. Sept. 1, 1997.

Amended by:

Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 7, eff. January 1, 2022.

Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(2), eff. January 1, 2022.

SUBCHAPTER C. PROCEDURE FOR PERFECTING LIEN


Notes of Decisions
Cited in 11 cases (4 in the last 5 years), 1991–2023 · leading case: Trinity Drywall Sys., LLC v. TOKA Gen. Contractors, Ltd., & Vineyard Vill., MSV, LLC, 416 S.W.3d 201 (Tex. App. 2013).
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Trinity Drywall Sys., LLC v. TOKA Gen. Contractors, Ltd., & Vineyard Vill., MSV, LLC, 416 S.W.3d 201 (Tex. App. 2013). · cites it 4× “See Tex. Prop.Code Ann. § 53.026 (West 2007).”
Goldstein v. State, 803 S.W.2d 777 (Tex. App. 1991). · cites it 2× “Tex.Prop.Code Ann. § 53.026 (Vernon 1984), provisions repealed by amending Act of May 26, 1989, 71st Leg.”
First Cash, Ltd. v. JQ-Parkdale, LLC, H&JQ PD, LLC, W-SB Staples/SPID, LLC, R-SB Staples/SPID, LLC, Parkdale Income Partners, LP, & Capital Area Retail Dev. II, Inc., 538 S.W.3d 189 (Tex. App. 2018). “See generally TEX. PROP. CODE ANN. § 53.026 (West, Westlaw through 2017 1st C.”
Sw. Props., L.P. v. Lite-Dec of Texas, Inc., 989 S.W.2d 69 (Tex. App. 1999). “Tex. Prop.Code Ann. § 53.026(a) (Vernon Supp.”
in Re Make Ready Contractors, Inc., Relator (Tex. 2015). · cites it 11× “3 ISSUE NUMBER 3: Whether Texas Property Code § 53.026 applies to constitutional mechanic’s liens.”
Thompson Co., Inc. v. Paris Lakes Med. Assets, LLC (E.D. Tex. 2021). · cites it 5× “Thompson contends that it is deemed to have contracted directly with PLM Center pursuant to the “Sham Contract” provision of Texas’ mechanic’s lien statute, Texas Property Code Section 53.026 (Dkt. #23 ¶ 15).”
Exchanger Contractors Inc. v. Comerica Bank-Texas, 330 F.3d 339 (5th Cir. 2003). “See Tex. Prop.Code § 53.026 (Vernon 1995 & Supp.”
Zerga Phin-Ker, LP v. HMC Contracting Servs., LLC, Hale Mills Constr., Ltd., Hale Mills Constr., Inc., KGP Mgmt., LLC, PKP Mgmt., LLC, DAP Mgmt., LLP, Hartford Fire Ins. Co., & Kendall Phinney, Individually (Tex. App. 2021). “See TEX. PROP. CODE ANN. § 53.026 (West 2014).”
AdvanTech Constr. Sys., LLC & Luis G. Higareda v. Michalson Builders, Inc. & Michael Czapski (Tex. App. 2023). “Laws 1880 , 1881 (Tex. Prop. Code § 53.026(a)(2), amended by Act of May 28, 2021, 87th Leg.”
Charter Drywall Houston, Inc. v. Matthews Investments Sw. Inc. XX (Tex. App. 2023). “” Tex. Prop. Code § 53.026(a). “Purported original contractor” is defined to mean: an original contractor who can effectively control the owner or is effectively controlled by the owner through common ownership of voting stock or ownership interests, interlocking directorships,…”
Waterpoint Int'l LLC v. Comerica Bank-Texas (5th Cir. 2003). “See TEX. PROP. CODE § 53.026 (Vernon 1995 & Supp.”
— Tex. Prop. Code § 53.026(a) — 5 cases
Trinity Drywall Sys., LLC v. TOKA Gen. Contractors, Ltd., & Vineyard Vill., MSV, LLC, 416 S.W.3d 201 (Tex. App. 2013). “See Tex. Prop.Code Ann. § 53.026 (West 2007).”
Sw. Props., L.P. v. Lite-Dec of Texas, Inc., 989 S.W.2d 69 (Tex. App. 1999). “Tex. Prop.Code Ann. § 53.026(a) (Vernon Supp.”
Charter Drywall Houston, Inc. v. Matthews Investments Sw. Inc. XX (Tex. App. 2023). “” Tex. Prop. Code § 53.026(a). “Purported original contractor” is defined to mean: an original contractor who can effectively control the owner or is effectively controlled by the owner through common ownership of voting stock or ownership interests, interlocking directorships,…”
Thompson Co., Inc. v. Paris Lakes Med. Assets, LLC (E.D. Tex. 2021). “Thompson contends that it is deemed to have contracted directly with PLM Center pursuant to the “Sham Contract” provision of Texas’ mechanic’s lien statute, Texas Property Code Section 53.026 (Dkt. #23 ¶ 15).”
in Re Make Ready Contractors, Inc., Relator (Tex. 2015). “3 ISSUE NUMBER 3: Whether Texas Property Code § 53.026 applies to constitutional mechanic’s liens.”
— Tex. Prop. Code § 53.026(a)(2) — 2 cases
AdvanTech Constr. Sys., LLC & Luis G. Higareda v. Michalson Builders, Inc. & Michael Czapski (Tex. App. 2023). “Laws 1880 , 1881 (Tex. Prop. Code § 53.026(a)(2), amended by Act of May 28, 2021, 87th Leg.”
Thompson Co., Inc. v. Paris Lakes Med. Assets, LLC (E.D. Tex. 2021). “Thompson contends that it is deemed to have contracted directly with PLM Center pursuant to the “Sham Contract” provision of Texas’ mechanic’s lien statute, Texas Property Code Section 53.026 (Dkt. #23 ¶ 15).”
— Tex. Prop. Code § 53.026(b) — 1 case
Goldstein v. State, 803 S.W.2d 777 (Tex. App. 1991). “Tex.Prop.Code Ann. § 53.026 (Vernon 1984), provisions repealed by amending Act of May 26, 1989, 71st Leg.”
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