2009 Texas Code
PROPERTY CODE
TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT
CHAPTER 430. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS  

PROPERTY CODE

TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT

SUBTITLE D. STATE-SPONSORED INSPECTION AND DISPUTE RESOLUTION

PROCESS; STATUTORY WARRANTY AND BUILDING AND PERFORMANCE

STANDARDS

CHAPTER 430. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 430.005. ALTERNATIVE STANDARDS FOR CERTAIN CONSTRUCTION.

(a) 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.

(b) This section does not exempt a builder in an area described

by Subsection (a) from the registration requirements imposed by

this title, including the requirements of Sections 416.001 and

426.003.

(c) An allegation of a postconstruction defect in a construction

project in an area described by Subsection (a) is subject to the

state-sponsored inspection and dispute resolution process

described by this subtitle.

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

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

843, Sec. 44, eff. September 1, 2007.

Sec. 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:

(1) warranties created by this chapter;

(2) warranties created by other statutes expressly referring to

residential construction or residential improvements;

(3) any express, written warranty acknowledged by the homeowner

and the builder; and

(4) warranties that apply to an area described by Section

430.005(a) as described by that section.

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

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

843, Sec. 45, eff. September 1, 2007.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.

Sec. 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, Sec. 1.01, eff. Sept. 1,

2003.