How do Landlord Liens Work for Commercial Properties?
Any person leasing or renting all or part of a building for nonresidential use has a preference lien on the nonexempt property of the tenant or subtenant in the building to secure the payment of rent due and to become due. The lien does not reach property that Section 54.023 exempts. As to rents to become due, the lien is for rent that is to become due during the current 12-month period succeeding the date of the rental agreement or an anniversary of that date. If a UCC financing statement has been filed during the previous contract year, a secured party’s perfected security interest is superior to the landlord’s lien.
If rent for commercial property becomes more than six months past due, the lien is unenforceable unless the landlord complies with certain filing requirements. A verified lien statement must be filed with the county clerk of the county where the property is located, stating the amount due, itemizing the months for which rent is claimed, stating the name and address of the tenant or subtenant, if any, and describing the rented premises. In addition, the statement must show the date on which the lease contract began and the date on which it will terminate.
Frequently Asked Questions
Does a Texas commercial landlord have lien rights on a tenant's property?
Yes. Texas law gives a commercial landlord a lien on all of the tenant's or subtenant's non-exempt property located in the building to secure payment of rent that is due and rent that is to become due.
How much future rent is covered by a commercial landlord's lien?
For rent not yet due, the lien secures the rent to become due during the current 12-month period, measured from the date of the rental agreement or an anniversary of that date. It is not limited to one month in advance, and it reaches the property of the tenant or the subtenant.
What property is subject to a commercial landlord's lien?
The lien covers property of the tenant or subtenant in the building, subject to any exemptions provided by law. Agricultural, garden, or ranch implements used by a farmer or rancher are generally exempt.
How is a commercial landlord's lien enforced in Texas?
Enforcement must follow specific legal procedures. The landlord cannot simply seize the tenant's property; court involvement is required. The process for enforcing a commercial lien is covered in detail on the Enforcing the Landlord's Lien sub-page.
Does a commercial landlord lien protect against the tenant's creditors?
The strength of the lien against third-party creditors depends on when the lien attached and whether proper procedures were followed. This is a fact-specific question. Contact us to evaluate your specific situation.