CHAPTER 420. BUILDING CONTRACT PROVISIONS
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.