The Texas Residential Construction
(Builders and Remodelers)

If your home was enrolled into the 1 year basic, 2 year mechanical and 10-year structural TRCC building performance and warranty program then you should have a letter or document from TRCC. If you don't then your home was not enrolled. If you think you got a letter but lost it the burden of proof is upon you. You may be able to replicate documentation through a Freedom of Information Act request via the the Texas Comptroller of Public Accounts. All records and property of TRCC was transferred to the Texas Comptroller of Public Accounts on or shortly after September 1, 2010. Any requests for information under the Texas Open Records Act should be sent to: open.records@cpa.state.tx.us. (See more details on the Public Information Act.)

History

The Texas Residential Construction Commission (TRCC) came into being in September, 2003 under SB 730 and ceased to exist on August 31, 2010 meaning that the Texas Residential Construction Commission Act (TRCCA) became ineffective after August 31, 2009 (see below).

The TRC established specific state wide performance standards which generally mirror the National Association of Home Builders - Residential Construction Performance Guideline, but the Act also put in place a mandatory dispute resolution procedure for construction defect claims.

In the 2009 legislative session lawmakers in Austin failed to support continuation of the TRCC. Under the State's Sunset Law (Government Code 325.017) the TRCC will close on August 31, 2010.

Between now and then what must a lender or builder do to comply with the Texas Residential Construction Commission Act?

On June 11 the TRCC met to establish a timeline and action plan to implement the State's Sunset Law provisions. The TRCC will not accept any new business after August 31, 2009, meaning that no new builder registration or home registration or submission of disputes will take place. In order to establish clear cutoff dates for builder registration, home enrollment and submission of disputes, and to allow enough time to administer claims through the end of its mandate, the agency implemented the following:

• All new homes and projects completed by August 31, 2009 must be registered;
• All new builder registrations and timely renewal registrations are required, and will be accepted, through August 31, 2009;
• Any new application or renewals for registration will be prorated;
• Inspection requests (SIRPs) will be accepted through August 31, 2009;
• Inspection requests will be scheduled for inspection as soon as possible;
• Ombudsmen will process complaints and conduct post inspection business through August 31, 2010.

Will a court recognize the statutory warranties and commission-adopted performance standards, even if the commission no longer exists?

For contracts executed before September 1, 2009, or work commenced before that date, courts will consider the law in effect at that time. So, if Title 16 was still in effect when the parties signed a contract for new home construction or transferred title on new home construction, the statutory warranties created by Title 16 and the commission–adopted performance standards still apply.

Furthermore, if the parties agree in their contract to the terms of the applicable warranties and performance standards, a court will rely on the terms of the contract to determine if those warranties and performance standards apply, including if the parties have agreed to apply the statutory warranties and commission-adopted performance standards.

Please note that Texas courts have not had a chance to review the legal effect of the Sunset Act on Title 16.  Therefore, a court may decide that the language in the Government Code Section 325.017 does not cause the statutory warranties and commission-adopted performance standards to expire until August 31, 2010.  Therefore, the safest course of action is for the parties to agree to written warranties and performance standards that are at least as stringent as the statutory warranties and commission-adopted performance standards until August 31, 2010.  That way, if a court should decide that Title 16 provisions are still in effect until August 31, 2010, the contract will be in compliance with the law.

What happens if I discover a defect on or after September 1, 2009, and the commission no longer accepts inspection requests?

Contact your builder.  If your builder does not respond satisfactorily, you may want to contact an attorney to discuss your legal options.  You can also complain to the Attorney General’s Consumer Complaint Division, Federal Trade Commission, your local County or District Attorney or to your local Better Business Bureau.

What happens if I sign a contract for a new home before August 31, 2009, and it is finished in November 2009, but I find a construction defect in March of 2010? 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.  The statutory language of Title 16 will be available from the Texas Legislature’s Web site: www.legis.state.tx.us or from a law library. The performance standards will be available from the Texas Register, which is published by the Secretary of State’s office. The commission rules are found in Title 10, chapter 304 of the Texas Administrative Code, which can be viewed on the Secretary of State’s Web site: www.sos.state.tx.us/tac/index.shtml.

Interesting Fact

Sunset Advisory Commission Report to the 81st Legislature of the Texas Residential Construction Commission.... click here

Unincorporated County Inspections...click here