81R10078 PMO-D
By: Leibowitz H.B. No. 3020
A BILL TO BE ENTITLED
AN ACT
relating to disclosure of the cause of and remediation of
construction defects resulting in resale by certain homebuilders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 420, Property Code, is amended by adding
Section 420.005 to read as follows:
Sec. 420.005. FULL DISCLOSURE OF RESALE BY BUILDER. (a)
Before a contract may be executed or money exchanged between a
builder and a buyer for purchase of a home that, because of one or
more construction defects, the builder repurchased from a previous
buyer from the builder, the builder must provide to the buyer a
document that fully discloses the nature of and the builder's
remediation of each of those construction defects.
(b) In addition to a disclosure of the nature of each
construction defect and the remediation work performed, the
disclosure under Subsection (a) must include information relating
to:
(1) any products installed in the home relating to the
remediation;
(2) care and component warranties of those products;
(3) building standards used in performing the
remediation; and
(4) any risks and hazards of the home.
SECTION 2. Section 420.005, Property Code, as added by this
Act, applies only to a contract executed by a builder and a buyer as
described by Section 420.005, Property Code, as added by this Act,
on or after the effective date of this Act. A contract executed
before the effective date of this Act is covered by the law in
effect when the contract was executed, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.