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Texas Statutes (Last Updated: January 4, 2014) |
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PROPERTY CODE |
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Title 5. EXEMPT PROPERTY AND LIENS |
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Subtitle B. LIENS |
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Chapter 53. MECHANIC'S, CONTRACTOR'S, OR MATERIALMAN'S LIEN |
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Subchapter B. PERSONS ENTITLED TO LIEN; SUBJECT PROPERTY |
Sec. 53.026. SHAM CONTRACT
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(a) A person who labors, specially fabricates materials, or furnishes labor or materials under a direct contractual relationship with another person is considered to be in direct contractual relationship with the owner and has a lien as an original contractor, if:
(1) the owner contracted with the other person for the construction or repair of a house, building, or improvements and the owner can effectively control that person through ownership of voting stock, interlocking directorships, or otherwise;
(2) the owner contracted with the other person for the construction or repair of a house, building, or improvements and that other person can effectively control the owner through ownership of voting stock, interlocking directorships, or otherwise; or
(3) the owner contracted with the other person for the construction or repair of a house, building, or improvements and the contract was made without good faith intention of the parties that the other person was to perform the contract.
(b) In this section, "owner" does not include a person who has or claims a security interest only.