Texas Shortens Time Allowed on Home Builder Lawsuits

Posted by AMY HUYNH | Jun 29, 2023

Two new Texas Home builders laws were quietly passed earlier this month.

House Bill 2022 made the first significant change to the Texas Residential Construction Liability Act (RCLA) in two decades. Among the changes are granting the builder to inspect the defect and being entitled to any evidence a homeowner has, including reports, photographs and videos. The dispute resolution process allows builder more time to make an offer to repair construction defects and more time to complete repairs. This law becomes effective on September 1, 2023.

House Bill 2024 was passed on June 9, 2023 and allows for shortening of the Statute of Repose. Effective immediately, home builders now have the ability to limit their liability of a "defective or unsafe condition of the real property or a deficiency in the construction or repair" to six years instead of the usual ten years. In order for builders to take advantage of this new policy, they must offer a qualifying express limited warranty with specific clarifications on coverage. 

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