New homebuilding provisions reviewed
Changes in state law won't affect area homebuilders much, some say. "I don't see anything here that will affect our operation at all," said Don Farek, of Cameo Homes in Killeen. "One of the changes in House Bill 1038 gives you (builders) an out," Fortner said. Following a state inspection, a builder can make a written offer to the homebuyer to fix the errors. If the offer is agreed upon by both parties, the homebuyer can call the state and cancel the complaint associated with the inspection results. If an offer is made in advance of the inspector's report that is similar to the recommendations, TRCC will pay the inspection fee and not report finding a defect.

New homebuilding provisions reviewed
By Kevin M. Smith
Killeen Daily Herald
Friday, January 18, 2008

Changes in state law won't affect area homebuilders much, some say.

"I don't see anything here that will affect our operation at all," said Don Farek, of Cameo Homes in Killeen.

Farek was one of many homebuilders from the Killeen area who attended a class at the Central Texas Home Builders Association on Thursday.

Patrick Fortner, of the Texas Residential Construction Commission, led the discussion about homebuilders' rights and responsibilities. He said the laws are to serve the customers and builders.

"The commission can serve a balance in that middle road," Fortner said.

House Bill 1038 went into effect in September 2007, changing some state requirements for homebuilders, including easier-to-read contracts, and fixing problems with the previous rules.

Fortner said contracts must be conspicuous and include the builder's name and registration number. Contracts must also include TRCC contact information. He said all that needs to be printed in at least 10-point size font.

He said the state inspection process is unchanged, but there are different ways for builders to handle complaints.

"One of the changes in House Bill 1038 gives you (builders) an out," Fortner said.

Following a state inspection, a builder can make a written offer to the homebuyer to fix the errors. If the offer is agreed upon by both parties, the homebuyer can call the state and cancel the complaint associated with the inspection results.

If an offer is made in advance of the inspector's report that is similar to the recommendations, TRCC will pay the inspection fee and not report finding a defect.

Fortner also emphasized the importance to responding to the TRCC when a complaint is filed.

"I just want a response so hopefully I can get you all talking," Fortner said. "We want to get to the point where it is resolved or find you are each so entrenched ... that you agree to disagree."

He said builders who do not respond to complaints could face a hearing.

Another change is the TRCC now has authority to enforce the rules.

"Before, if you violated a rule, we said, 'You really shouldn't do that,'" Fortner said, shaking his finger.

New provisions under HB 1038 include:

Builders must register new construction, material improvements and interior renovations on the 15th day after the date of substantial completion of the project or upon the issuance of a certificate of occupancy or completion.

A builder/remodeler may designate a post office box for correspondence purposes, but a builder/remodeler may not use the box as the principal place of business address.

A $10,000 administrative penalty is now allowed.

A $100,000 maximum penalty for fraud or misappropriation of funds is now allowed.

If the commission believes a builder is violating the rules, it may issue an order of cease and desist.

Unregistered builders and remodelers are prohibited from working on projects costing more than $10,000.

Inspections are required in unincorporated areas and cities that do not perform municipal inspections.

Contact Kevin M. Smith at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or call (254) 501-7550
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