Two properties, two owners, two contracts.

Labor and material releases at final payment.

"Labor and material releases at final payment"

How does this work, I believe where I live there is always a chance that the subs may not have been paid and you become liable?

Google your states lien laws.

Here on the truly "left" coast, when a supplier provides material to a project, within 20 days of that event, to be able to recover any potential losses, they are required to file a "preliminary notice of intent to lien". This also applies to all subcontractors.

A release of the right to lien by any and all service providers should be provided too you along with the final billing.

Take notes, names and dates.

Thanks, what I found for Texas, the original south, is below and the key words within the section are IF REQUESTED.

Affidavit Required For Payment:Any person who furnishes labor or materials for the construction of improvements on real property shall, if requested and as a condition of payment for such labor or materials, provide to the requesting party, or the party�s agent, an affidavit stating that the person has paid each of the person�s subcontractors, laborers, or materialmen in full for all labor and materials provided to the person for the construction. In the event, however, that the person has not paid each of the person�s subcontractors, laborers, or materialmen in full, the person shall state in the affidavit the amount owed and the name and, if known, the address and telephone number of each subcontractor, laborer, or materialman to whom the payment is owed.

Then request it. In fact have the contractor add an addendum to the contract that states that at the time of issuance of the request for final payment labor and material releases will be presented for all providers of, and any errors or omissions may result in a delay of the payment requested.

And again, Take notes, names and dates.