2005 Texas Property Code CHAPTER 401. GENERAL PROVISIONS

PROPERTY CODE

TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 401. GENERAL PROVISIONS


	§ 401.001. SHORT TITLE.  This title may be cited as the 
Texas Residential Construction Commission Act.

Added by Acts 2003, 78th Leg., ch. 458, § 1.01, eff. Sept. 1, 
2003.      


	§ 401.002. GENERAL DEFINITIONS.  In this title:                             
		(1)  "Applicable building and performance standards" 
means:                 
			(A)  building and performance standards adopted 
under Section 430.001;  or 
			(B)  for homes constructed before the adoption of 
building and performance standards under Section 430.001, the 
building and performance standards under any express warranty 
provided in writing by the builder or, if there is no express 
warranty, the usual and customary residential construction 
practices in effect at the time of the construction.
		(2)  "Applicable warranty period" means:                                      
			(A)  a warranty period established under Section 
430.001;  or              
			(B)  for construction to which the warranty 
periods adopted under Section 430.001 do not apply, any other 
construction warranty period that applies to the construction.
		(3)  "Approved architect" means an architect licensed 
by this state and approved by the commission to provide services to 
the commission in connection with the state-sponsored inspection 
and dispute resolution process.
		(4)  "Approved structural engineer" means a licensed 
professional engineer approved by the commission to provide 
services to the commission in connection with the state-sponsored 
inspection and dispute resolution process.
		(5)  "Commission" means the Texas Residential 
Construction Commission.      
		(6)  "Home" means the real property and improvements 
and appurtenances for a single-family house or duplex.
		(7)  "Homeowner" means a person who owns a home or a 
subrogee or assignee of a person who owns a home.
		(8)  "Limited statutory warranty and building and 
performance standards" means the limited statutory warranty and 
building and performance standards adopted by the commission under 
Section 430.001.
		(9)  "Nonstructural matter" has the meaning assigned by 
the limited statutory warranty and building and performance 
standards adopted by the commission under Section 430.001.
		(10)  "Request" means a request submitted under Section 
428.001.            
		(11)  "State inspector" means a person employed by the 
commission under Section 427.002.
		(12)  "State-sponsored inspection and dispute 
resolution process" means the process by which the commission 
resolves a request.
		(13)  "Structural" means the load-bearing portion of a 
home.                
		(14)  "Structural failure" has the meaning assigned by 
the limited statutory warranty and building and performance 
standards adopted by the commission under Section 430.001.
		(15)  "Third-party inspector" means a person appointed 
by the commission under Section 428.003.
		(16)  "Warranty of habitability" means a builder's 
obligation to construct a home or home improvement that is in 
compliance with the limited statutory warranties and building and 
performance standards adopted by the commission under Section 
430.001 and that is safe, sanitary, and fit for humans to inhabit.

Added by Acts 2003, 78th Leg., ch. 458, § 1.01, eff. Sept. 1, 
2003.      


	§ 401.003. DEFINITION OF BUILDER.  (a) In this title, 
"builder" means any business entity or individual who, for a fixed 
price, commission, fee, wage, or other compensation, constructs or 
supervises or manages the construction of:
		(1)  a new home;                                                              
		(2)  a material improvement to a home, other than an 
improvement solely to replace or repair a roof of an existing home;  
or
		(3)  an improvement to the interior of an existing home 
when the cost of the work exceeds $20,000.
	(b)  The term includes:                                                        
		(1)  an owner, officer, director, shareholder, 
partner, affiliate, or employee of the builder;
		(2)  a risk retention group governed by Article 21.54, 
Insurance Code, that insures all or any part of a builder's 
liability for the cost to repair a residential construction defect;  
and
		(3)  a third-party warranty company and its 
administrator.                  
	(c)  The term does not include any business entity or 
individual who has been issued a license by this state or an agency 
or political subdivision of this state to practice a trade or 
profession related to or affiliated with residential construction 
if the work being done by the entity or individual to the home is 
solely for the purpose for which the license was issued.

Added by Acts 2003, 78th Leg., ch. 458, § 1.01, eff. Sept. 1, 
2003.      


	§ 401.004. DEFINITION OF CONSTRUCTION DEFECT.  (a) In 
this title, "construction defect" means:
		(1)  the failure of the design, construction, or repair 
of a home, an alteration of or a repair, addition, or improvement to 
an existing home, or an appurtenance to a home to meet the 
applicable warranty and building and performance standards during 
the applicable warranty period;  and
		(2)  any physical damage to the home, an appurtenance 
to the home, or real property on which the home or appurtenance is 
affixed that is proximately caused by that failure.
	(b)  The term does not include a defect that arises or any 
damages that arise wholly or partly from:
		(1)  the negligence of a person other than the builder 
or an agent, employee, subcontractor, or supplier of the builder;
		(2)  failure of a person other than the builder or an 
agent, employee, subcontractor, or supplier of the builder to:
			(A)  take reasonable action to mitigate any 
damages that arise from a defect;  or
			(B)  take reasonable action to maintain the home;                            
		(3)  normal wear, tear, or deterioration;  or                                 
		(4)  normal shrinkage due to drying or settlement of 
construction components within the tolerance of building and 
performance standards.

Added by Acts 2003, 78th Leg., ch. 458, § 1.01, eff. Sept. 1, 
2003.      


	§ 401.005. EXEMPTIONS.  (a) This title does not apply to a 
home that is:  
		(1)  built by the individual who owns the home, alone or 
with the assistance of the individual's employees or independent 
contractors;  and
		(2)  used by the individual as the individual's primary 
residence for at least one year after the completion or substantial 
completion of construction of the home.
	(b)  This title does not apply to a homeowner or to a 
homeowner's real estate broker, agent, or property manager who 
supervises or arranges for the construction of an improvement to a 
home owned by the homeowner.

Added by Acts 2003, 78th Leg., ch. 458, § 1.01, eff. Sept. 1, 
2003.      


	§ 401.006. SUNSET PROVISION.  The Texas Residential 
Construction Commission is subject to Chapter 325, Government Code 
(Texas Sunset Act). Unless continued in existence as provided by 
that chapter, the commission is abolished and this title expires 
September 1, 2009.

Added by Acts 2003, 78th Leg., ch. 458, § 1.01, eff. Sept. 1, 
2003.