How does the abolishment of the commission affect you as a homebuyer?
All new homes completed by August 31, 2009 must still be registered. Ombudsmen will actively process complaints and post-inspection actions through August 31, 2010.
What is the status of the statutory warranties?
Until August 31, 2009: The statutory warranties are still in effect and will apply to work performed under residential construction contracts signed on or before September 1, 2009. On or after September 1, 2009 and until August 31, 2010 a builder and a homeowner may still agree by contract to the terms of the statutory warranties and the commission adopted performance standards. Additionally, the parties may agree to any other express warranty that is not less than the statutory warranties and performance standards, just as they could before September 1, 2009. If the parties agree to something less than the statutory warranties, or if the parties' agreement is silent as to the warranty obligations of the builder, those parties may want to consult legal counsel.
What is the status of the commission adopted performance standards?
The commission-adopted performance standards for construction of one and two family homes as contained in Title 10 of the Texas Administrative Code Chapter 304 remain effective until August 31, 2010.
Will builder contracts change?
The commission required certain language be included in the builders contract including their registration number, the commission's tool-free number, and any arbitration provision to be set out conspicuously. After September 1, 2009 and until August 31, 2010 nothing in the law prohibits a builder from complying with the Property code as it relates to certain contract provisions, and providing information to the homeowner that the agency has been abolished and will not be available after August 31, 2010. Parties to a construction contract may want to consult legal counsel to determine their best course of action.
What happens if I sign a contract for a new home before August 31, 2009, and it is finished on after September 1, 2009. What warranties apply? What performance standards apply?
The limited statutory warranties and commission adopted performance standards apply unless the parties have an express written agreement for a greater warranty and/or more stringent performance standards.
What if I have other questions about warranties?
Refer to the Texas Residential Construction Commission web site www.texasrcc.org for more information.
If you would like more information on Katy, Texas real estate visit www.katyhomesforyou.com to locate current market conditions and available homes or contact Katy Real Estate Consultant Jim Woods at (832) 314-4066.
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