Texas State Guide
Texas New Home
Warranty Rights
A complete reference for original buyers of newly built homes in the State of Texas — updated for the 2023 RCLA cleanup and the 1-2-6 / 6 year statute of repose.
This document is a general reference. It is not legal advice and does not create an attorney client relationship. Before taking action, consult a licensed Texas attorney.
Download the Complete Document Package
- Legal Warranty Reference — Texas implied warranties, RCLA, DTPA, 1-2-6 / 10 year repose, post TRCC complaint channels
- Builder Defect Walkthrough Intake Form (TX specific) — room by room checklist for documenting every defect
Executive Summary
- Texas recognizes two distinct implied warranties in every new home sale by a builder vendor: habitability and good workmanship (Humber v. Morton, 426 S.W.2d 554 (Tex. 1968)).
- Habitability cannot be disclaimed. Good workmanship CAN be superseded by a written contract that describes in sufficient detail how the builder is to perform (Centex Homes v. Buecher, 95 S.W.3d 266 (Tex. 2002)).
- Before filing suit, the homeowner must serve a 60 day pre suit notice under RCLA § 27.004 and a parallel 60 day pre suit notice under DTPA § 17.505. The contractor has 35 days to request inspection (up to 3 inspections) and 60 days to make a written offer.
- The Texas Residential Construction Commission was abolished in 2009. No state builder license, no state recovery fund, no state administered dispute resolution program.
Foundational Case Law
Humber v. Morton, 426 S.W.2d 554 (Tex. 1968)
Texas’s foundational implied warranty case. Mrs. Humber’s chimney was defectively built; the first fire damaged the home. The Texas Supreme Court abolished caveat emptor as applied to new homes and held that a builder vendor impliedly warrants that the home was constructed in a good workmanlike manner and was suitable for human habitation. The Court called caveat emptor “an anachronism patently out of harmony with modern home buying practices.”
Gupta v. Ritter Homes, Inc., 646 S.W.2d 168 (Tex. 1983)
Extended both implied warranties to subsequent (downstream) purchasers for latent defects not discoverable by reasonable inspection. Privity is not required.
Melody Home Mfg. Co. v. Barnes, 741 S.W.2d 349 (Tex. 1987)
Implied warranty to perform repair services in a good and workmanlike manner cannot be waived. Foundation for the Centex analysis applied to new construction.
Centex Homes v. Buecher, 95 S.W.3d 266 (Tex. 2002)
The defining modern case. Habitability and workmanship are analytically separate and follow different waiver rules. Habitability cannot be disclaimed except in extremely narrow circumstances (the buyer is told of the specific defect or it is plainly visible). Good workmanship CAN be superseded by a written contract that describes in sufficient detail how the builder is to perform.
Lennar Homes of Texas Land & Constr., Ltd. v. Whiteley, 672 S.W.3d 367 (Tex. 2023)
Most recent refinement. A subsequent purchaser was bound by the arbitration clause in the original purchase agreement when asserting construction defect claims tied to the implied warranties. Downstream owners retain substantive rights but may be bound to the forum specified by the original contract.
The Two Warranties — Different Rules
Habitability (cannot be disclaimed)
- Home must be safe, sanitary, and fit for human habitation
- Defects must render the home unsuitable for its intended use as a home
- Cosmetic or non-structural defects rarely qualify
- Disclaimer NOT permitted except where buyer is told of specific defect or it is plainly visible
Good Workmanship (waivable by detailed substitute)
- Builder must perform with the skill of an ordinary competent builder in the community
- Covers workmanship and materials quality
- CAN be superseded by detailed written contract
- Boilerplate “as is” or general disclaimer language is insufficient
Most Misstated Fact
The Texas Residential Construction Commission was created in 2003 to register builders, administer a statutory new home warranty, and run a State Sponsored Inspection and Resolution Process (SIRP). It was abolished effective September 1, 2009 after the Sunset Advisory Commission found it “did more harm than good.” There is no state mandated new home warranty, no state builder license, no state warranty registry, no state recovery fund, and no state sponsored dispute resolution program in Texas today.
The RCLA survived as a separate statute and continues to govern pre suit notice and damages. House Bill 2022 (88th Legislature, effective September 1, 2023) was a cleanup bill that excised the remaining TRCC references from the RCLA.
Practical effect: the homeowner’s protection in Texas comes from (1) the common law implied warranties (Humber / Centex), (2) the RCLA procedure, (3) the DTPA, (4) ordinary contract law, and (5) any written limited warranty the builder voluntarily provides. Older homeowner facing materials that reference TRCC registration, SIRP, or a state warranty database are obsolete and frequently misleading.
Texas does not license residential general contractors at the state level. The Texas Department of Licensing and Regulation (TDLR) licenses specialty trades (electricians, HVAC, elevator, fire protection sprinkler installers, mold remediators, well drillers). The Texas State Board of Plumbing Examiners (TSBPE) licenses plumbers separately. Some cities require local trade registration but no city issues a comprehensive general contractor license.
The RCLA, at Tex. Prop. Code Ch. 27, is a procedural overlay. It does not create a cause of action — it governs notice, inspection, settlement offers, and damages for any claim arising from a construction defect at a residence. It expressly applies to and modifies DTPA, negligence, breach of contract, and breach of warranty claims.
Who and What is Covered
- Construction defect (§ 27.001, as amended by HB 2022 effective September 1, 2023) = a defective condition that results in actual physical damage to the residence, actual failure or lack of capability of a building component to perform its intended function, or a verifiable danger to occupant safety.
- Contractor includes general contractors, subcontractors, suppliers, and design professionals.
- Residence means real property and the improvements thereon that are owned and occupied (or to be occupied) as a primary residence.
The Mandatory Notice and Offer Procedure
| Step | What Happens |
|---|---|
| Homeowner serves written notice | At least 60 days before filing suit, by certified mail return receipt requested, describing in reasonable detail each construction defect and any evidence (§ 27.004). |
| Contractor’s inspection window | Within 35 days of receiving the notice, the contractor may make a written request to inspect. The contractor may inspect up to 3 times within that window (clarified by HB 2022, effective Sept. 1, 2023). |
| Contractor’s 60 day offer window | Within 60 days of receiving the notice (extended from 45 days by HB 2022), the contractor must make a written settlement offer: to repair, to pay money, or both. |
| Homeowner’s response | Accept, reject, or counter. If the homeowner unreasonably rejects a reasonable offer, recoverable damages are capped at the fair market value of the offer plus reasonable attorney’s fees incurred before the offer was rejected. |
| Effect of failure to give notice | Defendant may file a plea in abatement; court must abate the action until proper notice is given (§ 27.004(d)). The case is paused, not dismissed. |
| Effect of contractor’s failure | If the contractor fails to make a reasonable offer or fails to complete agreed upon repairs, the RCLA’s damage limitations no longer apply — the homeowner can pursue full DTPA remedies. |
Damages Under § 27.004(g)
The statutory list contains five categories of economic damages:
- Reasonable cost of repairs.
- Cost to replace or repair damaged personal property in the residence.
- Reasonable engineering and consulting fees.
- Reasonable temporary housing costs during repair.
- Reduction in current market value of the residence after the defect has been repaired.
Reasonable attorney’s fees are recoverable under a separate provision of Chapter 27 — typically only when the contractor fails to make a reasonable offer or fails to complete agreed upon repairs. They are not enumerated within § 27.004(g)(1)–(5).
§ 27.007 Was Repealed
Section 27.007 historically required residential construction contracts to contain a 10 point bold face Chapter-27 notice with a $500 statutory penalty for omission. § 27.007 was repealed effective September 1, 2023 by HB 2022. The disclosure requirement and statutory penalty no longer apply to contracts entered into on or after that date. For pre September 2023 contracts, the prior version may still be relevant on a transitional basis.
The Texas Deceptive Trade Practices Act (Tex. Bus. & Com. Code § 17.41 et seq.) applies to new home transactions — a residential homebuyer is a consumer under § 17.45(4) and a newly built home is a good for DTPA purposes (Melody Home, Centex).
Key Provisions
- § 17.46(b) — laundry list of deceptive acts (false representations about quality; misrepresenting affiliation; failing to disclose known defects).
- § 17.50(a) — private right of action when a deceptive act, breach of warranty, or unconscionable act is a producing cause of economic damages or mental anguish.
- § 17.505 — 60 day pre suit notice required. Standard practice is a combined RCLA + DTPA notice.
- § 17.50(b) — damages: economic damages; mental anguish for knowing violations; up to three times economic damages for knowing conduct; up to three times mental anguish for intentional conduct.
- § 17.50(d) — reasonable and necessary attorney’s fees are mandatory for the prevailing consumer.
- § 17.565 — 2 year statute of limitations from discovery; extendable up to 180 days for fraudulent concealment.
The RCLA Cap on DTPA Recovery
When the underlying complaint is a construction defect at a residence, RCLA § 27.004(g) limits damages to the listed categories — repair cost, personal property damage, engineering fees, temporary housing, and post repair diminution. The DTPA’s mental anguish and treble damages multipliers are typically unavailable for pure construction defect claims because the RCLA supersedes to the extent of conflict. Those multipliers become available only when the contractor fails to comply with the RCLA process or when the conduct falls outside what the RCLA defines as a construction defect.
Critical 2023 Amendment
House Bill 2024 (88th Legislature, effective June 9, 2023) created an alternative 6 year statute of repose for residential homebuilders who provide a qualifying 1-2-6 written warranty. Without a qualifying 1-2-6 warranty, the default 10 year repose under § 16.009 still applies. Always check the limited warranty book at intake — the difference between 6 years and 10 years often controls whether the claim survives.
The 1-2-6 Written Warranty
To qualify for the 6 year repose, the builder must provide a written warranty with these specific terms:
- 1 year — workmanship and materials
- 2 years — plumbing, electrical, and HVAC delivery systems
- 6 years — major structural components
Eligible properties are detached one family dwellings, detached two family dwellings, and townhouses up to three stories with separate egress (including qualifying condos).
All Relevant Limitations Clocks
| Theory of Liability | Period | Trigger / Accrual |
|---|---|---|
| Breach of written contract / implied warranty (residual catch all) | 4 years (§ 16.051) | Date of accrual. Discovery rule applies for latent defects. |
| Negligence / property damage | 2 years (§ 16.003) | Date of accrual or discovery for latent defects. |
| DTPA | 2 years (§ 17.565) | Date of deceptive act or date the consumer discovered or should have discovered it. Extendable up to 180 days for fraudulent concealment. |
| Statute of repose — default | 10 years (§ 16.009) | Date of substantial completion. Absolute outer bar. |
| Statute of repose — 1-2-6 alternative (post HB 2024) | 6 years (§ 16.009) | Contracts signed on or after June 9, 2023 where the builder provides a qualifying 1-2-6 written warranty. |
| Architect / engineer / interior designer / landscape architect repose | 10 years (§ 16.008) | Date of substantial completion. 2 year extension for timely written claims. |
Both § 16.008 and § 16.009 extend the repose period by 2 years where a written claim for damages, contribution, or indemnity is presented to the defendant within the original period.
Texas Department of Licensing and Regulation (TDLR)
Texas does not license residential general contractors at the state level. TDLR licenses specialty trades only — electricians, HVAC contractors, elevator installers, fire protection sprinkler installers, mold remediators, and well drillers. Complaints against licensees may result in fines, suspension, or revocation.
- License lookup and complaint filing: tdlr.texas.gov
Texas State Board of Plumbing Examiners (TSBPE)
Plumbers are licensed separately by TSBPE.
- License lookup and complaint filing: tsbpe.texas.gov
Texas Attorney General — Consumer Protection Division
Handles DTPA referrals, deceptive trade practice patterns, and consumer complaints. The AG does not litigate individual cases but maintains complaint records and may pursue enforcement actions.
- Online complaint: texasattorneygeneral.gov consumer protection
- Hotline: 1-800-621-0508
Local Building Code Enforcement
Permits and inspections are administered at the local level under the International Residential Code with Texas amendments. There is no statewide residential building code authority comparable to many other states. Code violation complaints to the local Building Department can trigger reinspection, stop work orders, or certificate of occupancy revocation.
Industry & Mediation Channels
- Texas Association of Builders: texasbuilders.org. Local HBAs in major metros (Greater Houston Builders Association, Dallas Builders Association, Greater Austin HBA, San Antonio HBA).
- Better Business Bureau: bbb.org. Non binding complaint and mediation services.
Court Jurisdiction
| Court | Dollar Limit | Statute | Notes |
|---|---|---|---|
| Justice Court (small claims) | $20,000 | Tex. Gov. Code § 27.031 | Raised from $10,000 effective September 1, 2020 (SB 2342). Exclusive of interest and costs. |
| Statutory County Court at Law | Up to $325,000 (effective September 1, 2025) | Tex. Gov. Code Ch. 25 | Raised from $250,000 effective September 1, 2025. Limits vary by enabling statute. |
| District Court | No upper limit | Tex. Const. art. V § 8 | Concurrent with county courts at lower amounts. Most meaningful defect cases land here. |
Venue is generally the county where the property sits under the general venue rules of Tex. Civ. Prac. & Rem. Code Ch. 15.
This is a general sequencing template, not a fixed timeline. Specific deadlines depend on the date of substantial completion, the date the homeowner first noticed each defect, the terms of any limited warranty, and whether a 1-2-6 warranty was issued.
| When | Action |
|---|---|
| Day 0 | Homeowner first notices defect. Photograph and date stamp. Save voicemails, texts, emails. Pull the closing package, limited warranty book (determine whether it is a 1-2-6 warranty), construction contract, and any communications with the builder. |
| Day 0–7 | Third party inspection — TREC licensed home inspector, structural engineer, or master trade specialist. |
| Day 7–14 | Engage Texas counsel. Counsel will determine whether 1-2-6 (6 year) or default (10 year) repose applies. |
| Day 14 | Serve the combined RCLA § 27.004 + DTPA § 17.505 60 day notice on the contractor by certified mail, return receipt requested. Both notices in a single letter. |
| Day 14–49 | Contractor’s 35 day inspection window. Up to 3 inspections. |
| Day 14–74 | Contractor’s 60 day window to make a written settlement offer (post HB 2022). If the contractor fails to make a reasonable offer, RCLA damage limitations no longer apply. |
| Day 74+ | If no acceptable resolution, file suit. Confirm: (1) the 2 year DTPA clock has not run from discovery; (2) the 4 year residual contract / warranty clock under § 16.051 is preserved; (3) the 10 year default or 6 year (1-2-6) repose under § 16.009 has not run. |
| At filing | Justice Court for claims up to $20,000. Statutory County Court at Law for $20,000.01 up to $325,000 (effective September 1, 2025). District Court for claims over $325,000 or where venue/discovery considerations favor it. Venue is the county where the property sits. |
- The Texas Residential Construction Commission was abolished September 1, 2009. No state warranty registry, no state recovery fund, no state administered dispute resolution program, and no statewide builder license. Homeowner materials referencing TRCC, SIRP, or state registered builders are out of date.
- Texas recognizes two distinct implied warranties with different waiver rules. Habitability cannot be disclaimed; good workmanship can be superseded by a sufficiently detailed written express warranty (Centex, 2002).
- HB 2024 (effective June 9, 2023) cut the statute of repose from 10 years to 6 years for builders providing a qualifying 1-2-6 written warranty. Always check the limited warranty book at intake.
- The RCLA caps DTPA damages. Mental anguish and treble damages are typically unavailable on a pure construction defect claim because § 27.004(g) limits recovery to the listed categories. Those multipliers become available only when the contractor fails to comply with the RCLA process.
- Texas does not license residential general contractors at the state level. Specialty trades only — TDLR for electricians, HVAC, elevator, fire sprinklers, mold, well drilling; TSBPE for plumbers. Some cities require local trade registration but no city issues a general contractor license.
- Subsequent purchasers retain rights for latent defects (Gupta, 1983) but may be bound procedurally by the arbitration clause from the original purchase contract (Lennar Homes v. Whiteley, 2023).
- Two parallel 60 day notices are required — RCLA § 27.004 and DTPA § 17.505. A combined notice is standard practice. Failing either triggers abatement.
- The contractor’s offer window was extended from 45 to 60 days by HB 2022 effective September 1, 2023. Materials still citing 45 days are out of date.
- § 27.007 was repealed by HB 2022 effective September 1, 2023. The 10 point bold face Chapter-27 disclosure requirement and $500 statutory penalty no longer apply to contracts entered into on or after that date.
- Statutory County Court at Law jurisdiction was raised to $325,000 effective September 1, 2025 (from $250,000). Justice Court remains at $20,000.
Download the Complete Document Package
- Legal Warranty Reference — Texas implied warranties, RCLA, DTPA, 1-2-6 / 10 year repose, post TRCC complaint channels
- Builder Defect Walkthrough Intake Form (TX specific) — room by room checklist for documenting every defect
Dealing With a
Construction Defect?
If you are a homeowner dealing with builder defects or considering purchasing a home that needs structural evaluation, Toni Schafer brings both Realtor expertise and General Contractor knowledge to help you understand what you are looking at and what your options are.