In Texas, construction defect claims cause significant issues for builders, contractors, and homeowners. Whether it is a new home with faulty wiring or cracks in the foundation, correcting these issues is expensive and time-consuming. Understanding your rights and responsibilities under state law in Texas is critical when protecting your property. Our Houston real estate lawyer explains in further detail below.

What is a Construction Defect?

Construction defects are issues that arise from a faulty design, build, repair, or remodel of a structure, such as a home. Construction defects can include anything from improper workmanship to poor materials to total structure failures. Some defects, such as cracks in the walls, are obvious. Others, though, such as mold or leaks behind walls, can take years to appear. Regardless of whether defects are obvious or not, they may be grounds for legal action in Texas.

The Texas Residential Construction Liability Act (RCLA)

The Texas Residential Construction Liability Act (RCLA) governs construction defect lawsuits. Under the Act, contractors must be given an opportunity to inspect the problem and correct it, or propose a settlement. Homeowners must provide written notice of the problem before filing a lawsuit. Contractors then have up to 60 days to repair the issue or settle the claim. After receiving notice of the issue, contractors also have the right to inspect the property one to three times within 35 days of receiving the written notice.

House Bill 2022 updated the law on contracts that were signed and became effective after September 1, 2023. This bill allows contractors to make a late settlement offer if there were delays outside of the contractor’s control. The bill also provides a clearer definition of a construction defect. Homeowners must show that the problem existed during construction and either led to a major system failure, caused physical damage, or made the home unsafe.

Common Types of Construction Defects

Any flaw in design, construction, or repair can cause a construction defect, but there are some that are more common than others. These include:

• Cracked or shifting foundations
• Roof leaks
• Poor grading or drainage
• Structural issues, such as improper framing
• HVAC problems and other electrical issues
• Plumbing failures

The above defects, and others, can cause much larger problems, such as wood rot, mold, or even total loss of use. Texas property damage from improper construction can affect home resale value and can be very expensive. When a property is damaged due to poor construction, it can be expensive to fix and even impact home resale value.

What is the Statute of Limitations and Statute of Repose on Construction Defects?

There is a limited amount of time to file a construction defect claim in Texas. For most claims regarding warranty and breach of contract, the statute of limitations is four years from the date the defect was discovered, or the date it should have been discovered. The time limit may be extended when a case involves fraud.

In addition to the statute of limitations, the statute of repose sets a firm deadline regardless of when the defect was found. The statute of repose for contracts signed on or after June 9, 2023, is just six years, shortened from ten years, if the contractor or builder provides a written warranty meeting the following minimum standards:

• One year for materials and workmanship
• Two years for electrical, plumbing, heating, and air conditioning systems
• Six years for major structural components

The new six-year rule applies to builders of detached one and two-family homes and townhouses up to three stories. For other types of buildings, such as condominiums or apartment buildings, the statute of repose is still ten years. Homeowners should always consult with a Houston real estate lawyer who can ensure their claim is filed on time and that their rights are upheld.

Determining Liability for Construction Defects

In Texas, builder liability depends on the nature of the defect, the contract, and the party responsible for the work. Contractors, subcontractors, architects, and engineers can be held responsible for issues they caused through breach of warranty or negligence. Contractor negligence in construction often includes things such as failing to supervise contractors, failing to follow code, or using faulty materials. Still, liability can be reduced if the builder warned the homeowner of a risk or if the issue was caused by changes made by the homeowner or a lack of maintenance.

Warranty Disputes in Houston

The vast majority of builders in Houston offer a warranty for their work, either through a contract or a third-party warranty company. Issues can arise when builders do not accept responsibility for the problem, or the repairs they are offering are not enough to fully correct the problem. Depending on the terms of the warranty, these warranty disputes may fall under the RCLA, or they may result in a claim for breach of contract.

Steps When Filing a Construction Defect Claim

If you are a homeowner trying to resolve a construction defect, there are certain steps to follow. They include:

• Document everything: Take photos and video footage of the defect from different angles, up close, and footage of the location as a whole. Also keep all contracts and notes from any communication between you and the builder or contractor. 
• Notify the builder: Provide the builder with proper notice of the defect, as required by the RCLA. 
• Allow an inspection: You are required to provide the contractor the opportunity to inspect the problem.
• Review the offer: If the contractor provides you with an offer for repair or settlement, review it to determine if it is fair.
• Seek legal assistance: If the issue is not corrected or the offer is too low, it is important to speak to a Houston real estate lawyer.

Our Real Estate Lawyer in Houston Can Help with Your Claim

If you are preparing to file a construction defect claim, call our Houston real estate lawyer at Integrity Law Group, PLLC, first. Our experienced attorney understands the challenges faced by both contractors and homeowners and can help you overcome them to resolve your dispute. Call us now at (832) 384-5207 or fill out our online form to schedule a consultation and to learn more about how we can help.

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