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The bills-paid affidavit, before you sign it

The BidWell teamLast checked against the Texas Property Code on Nov 2, 2026 · 6 min read

This explains the Texas Property Code in plain terms. It is not legal advice. For a specific job or dispute, talk to a Texas construction attorney.

At final payment on a Texas residential job, the original contractor gives the owner a sworn statement. It says everyone who furnished labor or materials has been paid in full. If someone hasn't been, it lists them and what they're owed.

That's the bills-paid affidavit, under Texas Property Code section 53.259. It's short. It's also the one piece of job paperwork that can come back on you personally if it's wrong.

Who signs it, and when

The original contractor signs it: the one with the contract with the owner. It's given at final payment.

The owner was told to expect it. The disclosure you gave them before they signed (53.255) says that on final completion and before final payment, the contractor has to furnish an affidavit stating that all bills have been paid.

The statute makes it a condition of final payment: you sign it and deliver it when the final payment is tendered. An owner, lender or title company may hold the final check until they have it.

What it says

There are two ways it can read.

Everyone's paid. You state that each person who furnished labor or materials for the work on the property has been paid in full.

Someone isn't paid yet. You list each person still owed, the amount, and their name, address and phone number if you know them.

That's the whole document. No long form, no fine print. The weight is in whether it's true.

Why you take it seriously

A false or misleading bills-paid affidavit isn't a paperwork slip. Made intentionally, knowingly or recklessly, it's a misdemeanor: a fine of up to $4,000, up to a year in jail, or both. And the person who signs it is personally liable for any loss caused by false or incorrect information in it (53.259(c) and (d)).

Personally liable means you, not just your company.

Here's why the law cares. The owner's disclosure tells them that if a sub or supplier who isn't paid makes a claim, the owner can end up liable and the property can carry a lien, even though they never hired that sub. The affidavit is how the owner knows whether to pay you the rest.

If a sub or supplier isn't paid yet

List them. Don't sign "all paid" because you're going to pay them Friday.

The disclosure tells the owner what to do when the affidavit lists an unpaid bill: hold back that amount until they get a waiver or release from that sub or supplier.

That's a fair trade. You get paid for everything else, the owner holds back only what's still owed downstream, and it's released when the sub signs off.

Signing "all paid" when it isn't is the exact thing the penalty is for.

An example

Ridgeline Tile & Bath finishes a primary bath. At the walk-through, every sub is paid except the glass shop, which hasn't invoiced the $1,850 shower door yet. Ridgeline signs the affidavit listing the glass shop, its address and phone, and $1,850 owed.

The owner pays the final, holding back $1,850. When the glass shop is paid and signs a release, the owner releases the rest.

Keep it true all job long

The affidavit is easy to get right at the end if the paperwork was right in the middle.

  • The subs list. Before work starts, the owner gets your list of subs and suppliers (53.256), updated within 15 days of each change. That's who might be owed.
  • Disbursement statements. Each time you ask for money, you name the subs or suppliers you'll pay from it (53.258).
  • Sub bills marked paid. When you pay a sub, record it the same day. A pile of unmarked bills at the end is how a wrong affidavit happens.
  • Lien waivers. Your own Texas lien waivers go with each payment. The final waiver goes with the final payment, alongside the affidavit.

If your payment schedule leaves the final small, there's less riding on the last day. See contractor payment schedules.

Does it need a notary?

The statute calls it an affidavit. Texas law lets an unsworn declaration stand in for an affidavit required by statute: signed under penalty of perjury, with your name, date of birth and address, and no notary. The section lists exceptions, such as papers filed with the county clerk (Civil Practice and Remedies Code 132.001). The bills-paid affidavit is delivered to the owner, not filed. If you're unsure it fits your job, ask a Texas construction attorney.

Some lenders and title companies still want a notarized affidavit on their own form. Ask them before the walk-through, so the final check doesn't wait on a notary.

The seller's version

Section 53.259 also has a version the seller of a newly built home signs at closing. That's a different situation and not what this article covers.

Questions contractors ask

No. A lien waiver gives up your own lien rights for a payment. The affidavit says whether your subs and suppliers have been paid. At the final, the owner usually wants both.

Sources

This explains the Texas Property Code in plain terms. It is not legal advice. For a specific job or dispute, talk to a Texas construction attorney. Residential jobs only; commercial rules differ.