2005 Texas Property Code CHAPTER 430. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS

PROPERTY CODE

CHAPTER 430. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS


	§ 430.001. LIMITED STATUTORY WARRANTIES AND BUILDING AND 
PERFORMANCE STANDARDS.  (a) The commission by rule shall adopt 
limited statutory warranties and building and performance 
standards for residential construction that comply with this 
section.
	(b)  The warranty periods shall be:                                            
		(1)  one year for workmanship and materials;                                  
		(2)  two years for plumbing, electrical, heating, and 
air-conditioning delivery systems;  and
		(3)  10 years for major structural components of the 
home.                  
	(c)  The limited statutory warranties and building and 
performance standards must:
		(1)  require substantial compliance with the 
nonelectrical standards contained in the version of the 
International Residential Code for One- and Two-Family Dwellings 
published by the International Code Council that is applicable 
under Subsection (d) and the electrical standards contained in the 
version of the National Electrical Code that is applicable under 
Subsection (e);
		(2)  include standards for mold reduction and 
remediation that comply with Section 430.003;
		(3)  establish standards for performance for interior 
and exterior components of a home, including foundations, floors, 
ceilings, walls, roofs, drainage, landscaping, irrigation, 
heating, cooling, and electrical and plumbing components;  and
		(4)  contain standards that are not less stringent than 
the standards required by the United States Department of Housing 
and Urban Development for FHA programs as set forth in 24 C.F.R. 
Sections 203.202 through 203.206.
	(d)  The International Residential Code for One- and 
Two-Family Dwellings that applies to nonelectrical aspects of 
residential construction for the purposes of the limited statutory 
warranties and building and performance standards adopted under 
this section is:
		(1)  for residential construction located in a 
municipality or the extraterritorial jurisdiction of a 
municipality, the version of the International Residential Code 
applicable to nonelectrical aspects of residential construction in 
the municipality under Section 214.212, Local Government Code;
		(2)  for residential construction located in an 
unincorporated area not in the extraterritorial jurisdiction of a 
municipality, the version of the International Residential Code 
applicable to nonelectrical aspects of residential construction in 
the municipality that is the county seat of the county in which the 
construction is located;  and
		(3)  for residential construction located in an 
unincorporated area in a county that does not contain an 
incorporated area, the version of the International Residential 
Code that existed on May 1, 2001.
	(e)  The National Electrical Code for One- and Two-Family 
Dwellings that applies to electrical aspects of residential 
construction for the purposes of this section is:
		(1)  for residential construction located in a 
municipality or the extraterritorial jurisdiction of a 
municipality, the version of the National Electrical Code 
applicable to electrical aspects of residential construction in the 
municipality under Section 214.214, Local Government Code;
		(2)  for residential construction located in an 
unincorporated area not in the extraterritorial jurisdiction of a 
municipality, the version of the National Electrical Code 
applicable to electrical aspects of residential construction in the 
municipality that is the county seat of the county in which the 
construction is located;  and
		(3)  for residential construction located in an 
unincorporated area in a county that does not contain an 
incorporated area, the version of the National Electrical Code that 
existed on May 1, 2001.
	(f)  Except as provided by a written agreement between the 
builder and the initial homeowner, a warranty period adopted under 
this section for a new home begins on the earlier of the date of:
		(1)  occupancy;  or                                                           
		(2)  transfer of title from the builder to the initial 
homeowner.           
	(g)  A warranty period adopted under this section for an 
improvement other than a new home begins on the date the improvement 
is substantially completed.
	(h)  The building and performance standards adopted by the 
commission under this section may be adopted in phases and amended 
or supplemented by the commission from time to time as the 
commission receives additional evidence or information from task 
forces or other sources regarding any improvements or developments 
in the areas of residential homebuilding practices, procedures, or 
technology.

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


	§ 430.002. WARRANTY OF HABITABILITY.  (a) The 
construction of each new home or home improvement shall include the 
warranty of habitability.
	(b)  For a construction defect to be actionable as a breach 
of the warranty of habitability, the defect must have a direct 
adverse effect on the habitable areas of the home and must not have 
been discoverable by a reasonable prudent inspection or examination 
of the home or home improvement within the applicable warranty 
periods adopted by the commission under Section 430.001.

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


	§ 430.003. MOLD REDUCTION AND REMEDIATION;  TASK 
FORCE.  (a) The building and performance standards adopted under 
Section 430.001 must include measures that are designed to reduce 
the general population's exposure to mold often formed in 
water-damaged building materials and that include:
		(1)  methods by which mold, water damage, and microbial 
volatile compounds in indoor environments may be recognized;  and
		(2)  recommended management practices for:                                    
			(A)  limiting moisture intrusion in a home, which 
may include the use of a water leak detection system listed by 
Underwriters Laboratories that is capable of shutting off a valve 
on the main water line coming into the structure immediately upon 
detecting a water leak in the structure;  and
			(B)  mold remediation.                                                       
	(b)  The commission shall appoint a task force to advise the 
commission with regard to adoption of standards under this section.  
The task force must include representatives of public health 
officers of this state, health and medical experts, mold abatement 
experts, and representatives of affected consumers and industries.  
The commission and the task force shall consider the feasibility of 
adopting permissible limits for exposure to mold in indoor 
environments.

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


	§ 430.004. CERTAIN DESIGN RECOMMENDATIONS;  ADVISORY 
COMMITTEE.  The commission shall appoint a task force to develop 
design recommendations for residential construction that encourage 
rain harvesting and water recycling.

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


	§ 430.005. ALTERNATIVE STANDARDS FOR CERTAIN 
CONSTRUCTION.  For the purpose of this title, the only statutory 
warranty and building and performance standards that apply to 
residential construction in unincorporated areas of counties that 
are considered economically distressed areas as defined by Section 
15.001(11) of the Water Code and located within 50 miles of an 
international border are the standards established for colonia 
housing programs administered by the Texas Department of Housing 
and Community Affairs, unless a county commissioners court has 
adopted other building and performance standards authorized by 
statute.

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


	§ 430.006. STATUTORY WARRANTIES EXCLUSIVE.  The 
warranties established under this chapter supersede all implied 
warranties.  The only warranties that exist for residential 
construction or residential improvements are warranties created by 
this chapter or by other statutes expressly referring to 
residential construction or residential improvements, or any 
express, written warranty acknowledged by the homeowner and the 
builder.

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


	§ 430.007. WAIVER BY CONTRACT PROHIBITED.  A contract 
between a builder and a homeowner may not waive the limited 
statutory warranties and building and performance standards 
adopted under this chapter or the warranty of habitability.  This 
section does not prohibit a builder and a homeowner from 
contracting for more stringent warranties and building standards 
than are provided under this chapter.

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


	§ 430.008. APPROVAL OF THIRD-PARTY WARRANTY COMPANY.  (a) 
The commission may approve as a third-party warranty company for 
the purposes of Section 430.009:
		(1)  an entity that has operated warranty programs in 
this state for at least five years;
		(2)  a company whose performance is insured by an 
insurance company authorized to engage in the business of insurance 
in this state;  or
		(3)  an insurance company that insures the warranty 
obligations of a builder under the statutory warranty and building 
and performance standards.
	(b)  A third-party warranty company must submit to the 
commission an annual application and fee in the form and in the 
amount required by the commission by rule before the company may be 
approved under this section.

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


	§ 430.009. THIRD-PARTY WARRANTY COMPANY.  (a) A builder 
may elect to provide a warranty through a third-party warranty 
company approved by the commission.
	(b)  A transfer of liability under this section is not 
effective unless the company providing the warranty:
		(1)  agrees to perform the builder's warranty 
obligations under this chapter that are covered by the warranty 
provided through the third-party warranty company;  and
		(2)  actually pays for or corrects any construction 
defect covered by the warranty provided through the third-party 
warranty company.
	(c)  A third-party warranty company approved by the 
commission has all of the obligations and rights of a builder under 
this subtitle regarding performance of repairs to remedy 
construction defects or payment of money instead of repair.
	(d)  The third-party warranty company may not assume 
liability for personal injuries or damage to personal property.  A 
builder does not avoid liability for personal injuries or damage to 
personal property for which the builder would otherwise be liable 
under law by providing a written warranty from a third-party 
warranty company.
	(e)  A company that administers a warranty for a third-party 
warranty company is not liable for any damages resulting from a 
construction defect or from repairs covered under the warranty.

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


	§ 430.010. MINIMUM STANDARDS FOR DETERMINATION OF 
DEFECT.  A third-party warranty company shall use defect 
inspection procedures substantially similar to the procedures 
adopted by the commission under this subtitle.  A warranty company 
may adopt warranty standards in addition to the standards adopted 
by the commission.  A third-party warranty company may not reduce 
the limited statutory warranty and building and performance 
standards, except that a third-party warranty company shall not be 
required to provide a warranty of habitability.

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


	§ 430.011. EFFECT OF SUBTITLE ON OTHER RIGHTS AND 
OBLIGATIONS.  (a)  Except as permitted by this subtitle, an 
express, written contract between a homeowner and a builder may not 
limit the obligations of a builder under this title.
	(b)  After the issuance of written findings of fact and a 
ruling on an appeal under Chapter 429, a homeowner may bring a cause 
of action against a builder or third-party warranty company for 
breach of a limited statutory warranty adopted by the commission 
under this subtitle.  In an action brought under this subtitle, the 
homeowner may recover only those damages provided by Section 
27.004.
	(c)  Breach of a limited statutory warranty adopted by the 
commission or breach of the statutory warranty of habitability 
shall not, by itself, constitute a violation of the Deceptive Trade 
Practices-Consumer Protection Act (Subchapter E, Chapter 17, 
Business & Commerce Code).

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