CHAPTER 420. BUILDING CONTRACT PROVISIONS - Texas Statutes

PROPERTY CODE

TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT

SUBTITLE C. BUILDER REGISTRATION

CHAPTER 420. BUILDING CONTRACT PROVISIONS

Sec. 420.001. REQUIRED WRITTEN DISCLOSURE. In a contract for

the construction of a new home or an improvement to an existing

home required to be registered under Section 426.003, the

contract must contain a notice to the consumer in at least

10-point bold type or the computer equivalent that gives the

telephone number of the commission and states:

STATE LAW REQUIRES THAT A PERSON HOLD A CERTIFICATE OF

REGISTRATION FROM THE TEXAS RESIDENTIAL CONSTRUCTION COMMISSION

IF THE PERSON CONTRACTS TO CONSTRUCT A NEW HOME OR IF THE PERSON

CONTRACTS TO CONSTRUCT A MATERIAL IMPROVEMENT TO AN EXISTING HOME

OR CERTAIN IMPROVEMENTS TO THE INTERIOR OF AN EXISTING HOME AND

THE TOTAL COST OF THE IMPROVEMENT IS $10,000 OR MORE (INCLUDING

LABOR AND MATERIALS).

YOU MAY CONTACT THE COMMISSION AT [insert commission's telephone

number] TO FIND OUT WHETHER THE BUILDER HAS A VALID CERTIFICATE

OF REGISTRATION. THE COMMISSION HAS INFORMATION AVAILABLE ON THE

HISTORY OF BUILDERS, INCLUDING SUSPENSIONS, REVOCATIONS,

COMPLAINTS, AND RESOLUTION OF COMPLAINTS.

THIS CONTRACT IS SUBJECT TO CHAPTER 426, PROPERTY CODE. THE

PROVISIONS OF THAT CHAPTER GOVERN THE PROCESS THAT MUST BE

FOLLOWED IN THE EVENT A DISPUTE ARISES OUT OF AN ALLEGED

CONSTRUCTION DEFECT. IF YOU HAVE A COMPLAINT CONCERNING A

CONSTRUCTION DEFECT YOU MAY CONTACT THE COMMISSION AT THE

TOLL-FREE TELEPHONE NUMBER TO LEARN HOW TO PROCEED UNDER THE

STATE-SPONSORED INSPECTION AND DISPUTE RESOLUTION PROCESS.

Added by Acts 2007, 80th Leg., R.S., Ch.

843, Sec. 30, eff. September 1, 2007.

Sec. 420.002. REQUIRED CONTRACT PROVISIONS. In a contract for

the construction of a new home or an improvement to an existing

home required to be registered under Section 426.003, the

contract is not enforceable against a homeowner unless the

contract:

(1) contains the builder's name and certificate of registration

number; and

(2) contains the notice required by Section 420.001.

Added by Acts 2007, 80th Leg., R.S., Ch.

843, Sec. 30, eff. September 1, 2007.

Sec. 420.003. BINDING ARBITRATION CONTRACT PROVISION. (a) In a

contract for the construction of a new home or the improvement of

an existing home required to be registered under Section 426.003

and that contains a provision requiring the parties to submit a

dispute arising under the contract to binding arbitration, the

provision must be conspicuously printed or typed in a size equal

to at least 10-point bold type or the computer equivalent.

(b) A provision described by Subsection (a) is not enforceable

against the homeowner unless the requirements of Subsection (a)

are met.

Added by Acts 2007, 80th Leg., R.S., Ch.

843, Sec. 30, eff. September 1, 2007.