Texas Senate Bill SB1533

Texas 2009 - 81st Regular

Caption

Relating to persons subject to liability for residential construction defects or regulation as a builder of residential construction.

Impact

The bill is set to amend existing statutes to provide clearer definitions concerning liability and regulation in residential construction. By distinguishing between builders and other parties involved in construction, like financial institutions, the legislation seeks to reduce unnecessary liabilities for those entities that play a more indirect role in construction processes. This change intends to foster a more straightforward regulatory environment, which supporters argue could encourage investment in Texas's residential construction market while protecting builders and financial institutions from litigation related to construction defects.

Summary

SB1533 proposes amendments to the Texas Property Code regarding liability for residential construction defects. The bill clarifies who qualifies as a builder under Texas law and outlines exceptions for individuals and entities based on their actions in relation to residential construction. In particular, it specifies that federally insured financial institutions and their subsidiaries are not regarded as builders under the amended terms, which limits their liability in cases of construction defects. This redefinition aims to delineate responsibilities and protect certain stakeholders in the residential construction sector.

Contention

Points of contention surrounding SB1533 likely revolve around the implications of limiting the liability of financial institutions in residential construction. Opponents may argue that this could leave homeowners without adequate recourse against parties involved in the construction, thus potentially undermining consumer protections. There could also be concerns from regulatory bodies regarding the balance between facilitating business and ensuring that the rights of consumers and homeowners are adequately protected from possible defects arising from construction activities.