September 1 deadline looming for Texas home builders

Looking to build your dream house? Better get crackin'.

On September 1, 2007, House Bill 1038 becomes effective, which will require very specific and mandatory contractual disclosures in all residential construction contracts and contracts of sale for new homes, and failure to include these disclosures could eliminate certain rights. According to Dallas real estate law firm Decker, Jones, McMackin, McClane, Hall & Bates, P.C., it is imperative that all home builders and remodelers update their contracts before these amendments become effective.

Photo not provided by Decker Jones

That dream home you've always wanted may soon be even more out of reach

Among the most important amendments is one that requires builders to disclose to the owner, the builder’s name and registration number, information regarding builder registration requirements, Texas Residential Construction Commission (TRCC) contact information, and how to file a complaint with the TRCC. If the builder fails to include any of this information in its contract, the new amendments will prevent the builder from enforcing its contract against the owner. Potentially, this amendment could result in the builder’s inability to enforce arbitration, force final payment from the owner, or even file a mechanic’s lien.

Additionally, according to Decker Jones, if the arbitration clause, certificate of registration number, and the TRCC address and phone number where the owner may file a complaint are not conspicuously typed in at least 10-point bold type, neither the contract or arbitration clause may be enforceable by the builder.

Source: Decker Jones