Texas House Bill HB3400

Texas 2009 - 81st Regular

Caption

Relating to certain construction liens under the Texas Residential Construction Commission Act.

Impact

The proposed changes in HB3400 would affect how contracts are constructed and enforced in the context of residential building. The modifications would help to safeguard homeowners by ensuring that they have access to important information about their builders before entering into a contract. Additionally, the bill clarifies that a builder's failure to comply with these provisions does not invalidate a lien held by an entity providing financing, which could have implications for both lenders and homeowners. This effectively means that financing entities are still protected, even if the builder fails to meet all contract requirements.

Summary

House Bill 3400 focuses on amendments to the Texas Residential Construction Commission Act, specifically addressing provisions related to construction liens. The bill aims to clarify the enforceability of contracts for residential construction, stipulating that certain details must be included in such contracts to ensure they are valid against homeowners. This includes requirements for builders to provide their registration details in the contract, enhancing transparency and accountability in residential construction projects.

Contention

Notable points of contention around HB3400 include potential debates on the balance of power between homeowners and builders or contractors. While supporters argue that the bill enhances homeowner protections and overall accountability, critics might voice concerns that such regulations could create hurdles for builders, especially smaller contractors who may struggle to comply with stringent requirements. There is also the possibility that the bill may provoke discussions on the adequacy of existing homeowner protections under current law and whether additional measures are necessary to further protect consumer interests in the residential construction sector.