Texas House Bill HB981

Texas 2009 - 81st Regular

Caption

Relating to consumer protection for and remedies available to a homebuyer whose home does not comply with certain warranties; providing an administrative penalty.

Impact

HB 981 has the potential to significantly impact Texas state laws regarding home construction and consumer rights. By superseding existing laws and contract provisions that conflict with its terms, it seeks to ensure that remedy options for homebuyers are not limited by contractual agreements typically established by builders. This could provide homebuyers with a more robust avenue for recourse if they encounter issues post-purchase. The legislation also mandates builders to disclose information regarding the history of any home sold after being repurchased, thus providing transparency and protecting consumer interests.

Summary

House Bill 981 focuses on enhancing consumer protection for homebuyers regarding construction defects and warranty compliance in newly built homes. The bill establishes a new chapter in the Texas Property Code specifically aimed at addressing the remedies available to homebuyers whose homes do not meet certain statutory warranties. It outlines clear definitions of 'defects', 'homebuyers', and 'serious safety hazards', creating a framework for addressing grievances related to home construction issues. One significant aspect is the requirement for builders to restore homes in accordance with limited statutory warranties after repurchasing or replacing them, which enhances accountability in home construction and sales.

Contention

Some points of contention may arise from the added regulatory measures placed on builders, as opponents of the bill might argue that it creates excessive burdens on the construction industry, potentially increasing costs for homebuyers. Builders may contend that the stipulations requiring them to repair significant defects within specified timeframes or face administrative penalties could impact project timelines and overall pricing. Furthermore, the bill's provision allowing homebuyers to return defective homes or demand refunds could be viewed as too lenient on homeowners, possibly leading to misuse of consumer protections.