Short answer: if you signed a written contract over $5,000 for a pool at your homestead, Texas law says the builder shall put your payments in a “construction account” at a bank[1] and keep a record of every deposit, every payment out, and the balance.[2] Failing to keep that account or record is a Class A misdemeanor.[4] Here is what the law requires and how to ask for the paperwork.
Why homeowners ask
News reports about pool builds that stopped or never started often mention homeowners asking where their deposits went and whether the builder kept the money in a trust account. We don't name the businesses in those reports here. The point is that the law already requires a paper trail for most homestead pool jobs, and you can ask for it before something goes wrong.
When the construction-account rule applies
| Requirement | What sec. 162.006 says |
|---|---|
| Written contract with the property owner | Yes[1] |
| Improvements to a residential homestead | Yes (a rental or second home isn't covered by this section)[1] |
| Contract amount | More than $5,000[1] |
| Where the money goes | A construction account in a financial institution; the periodic statement must call it a “construction account”[1] |
What the builder must record (sec. 162.007)
- Source and amount of each deposit and the date it went in.[2]
- Date and amount of each disbursement and who was paid.[2]
- The current balance.[2]
- A record for each project of the direct and indirect costs charged to the owner.[2]
- All invoices and supporting documents for money paid out, linked to the account number.[2]
- Kept at least until the first anniversary of completion.[2]
Separately, on residential jobs chapter 53 requires the builder to give you the “Know your rights and responsibilities” disclosure and a disbursement statement with payment requests (secs. 53.255, 53.258).[6]
How to ask (a polite written request)
- Write, don't call. Email or a letter keeps a record.
- Ask: (a) whether my payments are deposited in a construction account under Property Code sec. 162.006; (b) a copy of the bank statement page showing the account title (account numbers can be redacted); (c) the project cost record under sec. 162.007(b) and a list of payments made from my funds to date.
- Ask for the chapter 53 disbursement statement with every future draw request.[6]
- Ask for lien waivers from subs and suppliers on the state forms. See lien waivers.
- Keep paying only on the contract milestones and keep the 10% retainage. See pay in full upfront?
Chapter 162 says what must be kept but doesn't set out a homeowner's inspection right in sec. 162.007, so treat this as a request, not a demand, unless your lawyer says otherwise.
If the builder won't answer or money is missing
- Misapplying trust funds is defined in sec. 162.031; the statute has affirmative defenses, including that the money paid the builder's actual project expenses.[3] Penalties are in sec. 162.032.[4]
- Keep the contract, receipts, and all messages. If work stopped, see builder stopped work; if the company filed, see builder filed bankruptcy.
- File a consumer complaint with the Texas Attorney General[7] and talk to a Texas attorney through the State Bar referral service.[8] Criminal trust-fund cases are handled by local prosecutors.
FAQ
Does my pool builder have to use a separate construction account in Texas?
If the builder has a written contract with you to build improvements on your residential homestead for more than $5,000, Property Code sec. 162.006 says the contractor shall deposit the trust funds in a construction account at a financial institution, and the bank statement must refer to it as a "construction account."
What records must the builder keep?
Sec. 162.007 requires an account record showing the source, amount and date of each deposit; the date, amount and payee of each disbursement; and the current balance. The builder must also keep a per-project record of direct and indirect costs charged to the owner, keep the supporting invoices, tie the paperwork to the account number, and keep it at least until the first anniversary of completion.
Can I demand to see the construction account records?
Chapter 162 sets out what must be kept, but sec. 162.007 doesn't spell out a homeowner's right to inspect it. You can ask in writing, and you can ask for the disbursement statement Chapter 53 requires with residential payment requests. If the builder refuses and money is missing, a Texas attorney can tell you how to get the records through a demand or a lawsuit.
Is it a crime not to keep a construction account?
Under sec. 162.032(c), failing to establish or maintain the required construction account or account record is a Class A misdemeanor. Misapplying $500 or more of trust funds is a Class A misdemeanor, or a third-degree felony with intent to defraud (sec. 162.032(a)-(b)). Whether any of this applies to a given builder is for prosecutors and courts to decide.
Related: trust funds · payment schedules · vetting a builder. Checked November 3, 2026. Something wrong? Tell us.
Sources
- Texas Property Code sec. 162.006, Construction Account Required in Certain Circumstances (Public.Law)
- Texas Property Code sec. 162.007, Management of Construction Accounts (Public.Law)
- Texas Property Code sec. 162.031, Misapplication of Trust Funds (Public.Law)
- Texas Property Code sec. 162.032, Penalties (Public.Law)
- Texas Property Code ch. 162 (official text)
- Texas Property Code ch. 53, incl. secs. 53.255 and 53.258 residential disclosure and disbursement statements (official text)
- Texas Attorney General: File a Consumer Complaint
- State Bar of Texas: Lawyer Referral & Information Service