- Texas Home Builder Commission Bill Heads to the Governor for Signature

Wednesday, 23rd May 2012

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Texas Home Builder Commission Bill Heads to the Governor for Signature
Added: 01/19/2004 Type: Summary Viewed: 791 time(s) [ Not Rated Yet ]

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Texas Home Builder Commission Bill Heads to the Governor for Signature

House Bill 730, "The Residential Construction Commission Act" written by The Texas Association of Builders passed the Senate and House this week and will become law. “On the surface this bill looks promising for the homebuyer, like a beautifully decorated model home, but it is built on a flawed foundation, hidden from view of the Texas homebuyer” says John Cobarruvias of Homeowners Against Deficient Dwellings

HB730 has some positive features. It creates the Texas Builders Commission and requires all homebuilders to be registered with the Commission. “This will provide a much needed focal point for consumers and consumer groups like HADD as well as a central location for builder complaints to be filed” says Cobarruvias.

It creates a mold task force to examine the ways to prevent mold in new homes and it guarantees the implied warranty of “habitability” which was upheld by the Texas Supreme Court last summer.

HB730 will also create an arbitration task force to investigate the abuse of mandatory binding arbitration in new home contracts, a subject that was studied by two House Committees last summer. And it requires all arbitration results to be made public to the Commission.

Unfortunately HB730 also creates a mandatory, complicated, costly, dispute resolution system based upon the extreme limitations of 3rd party new home warranties, while waiving the implied warranty of good workmanship, a warranty provided by the State to new homebuyers for the last 35 years. According to the Senate fiscal note, over 18,000 homeowners, 12% of all new homes, will be faced with a defect each year and will be required to use this process.

Although there are flaws in this bill, Senator Duncan, the original sponsor of the bill should be commended for his stand with the consumers and fighting for amendments on arbitration and the implied warranty of habitability. “Senator Duncan’s and his staff’s assistance was greatly appreciated. We look forward to working with him next session”, says Cobarruvias.

John R. Cobarruvias
President HADD Texas
14646 Cardinal Creek Ct
Houston, TX 77062
281-486-5203
john.cobarruvias@hadd.com

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