Texas Codes

Tex. Prop. Code § 53.081 (2026)

Authority To Withhold Funds For Benefit Of Claimants

✓ current as of May 2026
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Sec. 53.081. AUTHORITY TO WITHHOLD FUNDS FOR BENEFIT OF CLAIMANTS. (a) If an owner receives notice under Section 53.056 or 53.057, the owner may withhold from payments to the original contractor an amount necessary to pay the claim for which he receives notice. The withholding may be in addition to any reserved funds.

(b) If notice is sent under Section 53.056, the owner may withhold the funds immediately on receipt of the notice.

(c) If notice is sent under Section 53.057, the owner may withhold funds immediately on receipt of a copy of the claimant's affidavit prepared in accordance with Sections 53.052 through 53.055.

(d) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(7), eff. January 1, 2022.

Acts 1983, 68th Leg., p. 3543, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 12, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 11, eff. Sept. 1, 1997.

Amended by:

Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 14, eff. January 1, 2022.

Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(7), eff. January 1, 2022.

Notes of Decisions
Cited in 16 cases, 1997–2016 · leading case: Page v. Marton Roofing, Inc., 102 S.W.3d 733 (Tex. 2003).
Page v. Marton Roofing, Inc., 102 S.W.3d 733 (Tex. 2003). · cites it 6× “Marton Roofing subsequently filed suit, arguing that Page was liable for the unpaid invoices under both the statutory retainage provision of Texas Property Code § 53.103 and the fund-trapping provision of Texas Property Code § 53.”
San Antonio Credit Union v. O'CONNOR, 115 S.W.3d 82 (Tex. App. 2003). · cites it 2× “Tex. PROP.Code Ann. § 53.081 (Vernon Supp.”
Raymond v. Rahme, 78 S.W.3d 552 (Tex. App. 2002). “Laws 4693 , 4697 (amended 1997) (current version at Tex. Prop.Code Ann. § 53.081 (West Supp. 2002)); Tex.”
Hadnot v. Wenco Distributors, 961 S.W.2d 232 (Tex. App. 1997). · cites it 2× “101 et seq (Vernon 1995); Tex. PROP. Code Ann. § 53.081 et seq (Vernon 1995).”
Long Q. Pham & Thao M. Silva v. Harris Cnty. Rentals, L.L.C., 455 S.W.3d 702 (Tex. App. 2014). “Tex. Prop.Code Ann. § 53.081 (Vernon 2007); Tex.”
In Re Medina, 413 B.R. 583 (Bankr. W.D. Tex. 2009). · cites it 2× “§ 362 (a)(3); Tex.Prop.Code, § 53.081 (if an owner receives proper notice, then "the owner may withhold from payments to the original contractor an amount necessary to pay the claim”).”
Morrell Masonry Supply, Inc. v. Loeb, 349 S.W.3d 664 (Tex. App. 2011). · cites it 2× “081-085 of the Property Code, commonly referred to as the “fund-trapping statute,” required the Loebs to “hold back” enough money to pay the unpaid balance before exhausting their construction funds in payments to the original contractor.”
Addison Urban Dev. Partners, LLC v. Alan Ritchey Materials Co., LC, 437 S.W.3d 597 (Tex. App. 2014). “Tex. Prop.Code Ann. § 53.081 (West 2007); Page v.”
Jewelry Mfr.'s Exch., Inc. v. Tafoya, 374 S.W.3d 639 (Tex. App. 2012). “Tex. PROp.Code Ann. § 53.081. The owner will be personally liable for any amounts paid to the contractor after receiving the proper notice under the statute if the subcontractor’s lien has been secured and its claim reduced to judgment.”
Morrell Masonry Supply, Inc. v. Cedric K. Loeb, Sabrina Loeb & Cellar Doors Homes, Inc. (Tex. App. 2011). · cites it 2× “081–085 of the Property Code, commonly referred to as the “fund-trapping statute,” required the Loebs to “hold back” enough money to pay the unpaid balance before exhausting their construction funds in payments to the original contractor. The fund-trapping statute enables a…”
Jeff P. Jorgenson v. Joe v. Evans (Tex. App. 2016). “; see TEX. PROP. CODE ANN. § 53.081. Upon receipt of the requisite notice, the owner may withhold funds from the original contractor until the claim is paid or settled, the time for filing a lien affidavit has passed, or if an affidavit has been filed, until the claim is…”
In Re Huber Contracting, Ltd., 347 B.R. 205 (Bankr. W.D. Tex. 2006). “See Tex. Prop. Code, § 53.081, Historical and Statutory Notes (West 1995).”
— Tex. Prop. Code § 53.081(a) — 2 cases
Page v. Marton Roofing, Inc., 102 S.W.3d 733 (Tex. 2003). “Marton Roofing subsequently filed suit, arguing that Page was liable for the unpaid invoices under both the statutory retainage provision of Texas Property Code § 53.103 and the fund-trapping provision of Texas Property Code § 53.”
In Re Medina, 413 B.R. 583 (Bankr. W.D. Tex. 2009). “§ 362 (a)(3); Tex.Prop.Code, § 53.081 (if an owner receives proper notice, then "the owner may withhold from payments to the original contractor an amount necessary to pay the claim”).”
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