HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Summary of TRCC Sunset Bill - BH2295
Sunday, 19 April 2009

C.S.H.B. 2295 (as voted out of committee on 4/17)

 SIP/Mediation

  • Max time a homeowner can be stuck in the SIP: 76 days (workmanship & materials disputes) or 91 days (structural disputes)
  • If builder requests a SIP, HO can request mediation instead
  • HO can request either SIP or mediation. 
  • Third party inspectors must disclose any conflicts of interest – subject to disciplinary grounds if he fails to do so (inspector must not control/own more than 10% of a licensee or work for a licensee)
  • Final report of a SIP will be removed from the website and not subject to open records request if builder has made repairs and HO has confirmed the repairs
  • Builder is still entitled to make an offer to repair/settle per RCLA, but must do so within 15 days of the date on which the HO can bring a legal action
  • Only a HO can request mediation, and if HO does so, both the builder & the HO must participate in good faith
  • After 90 days, the mediation is deemed completed, even if no resolution has been reached (if an agreement is reached between the parties sooner, the mediation is deemed complete when the agreement is reached)
  • If the builder fails to make a repair he agreed to in the mediation, he’s subject to discipline
  • Builder & HO must split the mediator’s fee

Licensure

  • People who make interior repairs greater than $10,000 to a house that is sold within a year (and who can’t claim the house as a homestead exemption) must register as builders (requires flippers to register)
  • New builders will be required to post a $25,000 surety bond with TRCC (builders renewing their licenses are grandfathered)
  • Starting on September 1, 2011, every new builder must take an exam
  • Provisional licenses will be issued to new builders for 30 days so they have time to take the required 8 hour course) and for new builders who are currently licensed in good standing in another state for 6 months
  • Licenses are good for 2 years
  • Continuing education requirements: 16 hours every 2 years, including 1 hour of ethics that cannot be done with self-study.  Up to 2 hours every 2 years may be done via self-study

Misc

  • TRCC given a mission that includes overseeing people required to be licensed to ensure they’re responsible & accountable to homebuyers
  • Next TRCC sunset: 2015
  • 4 public members (instead of 3)

Arbitration

  • Any agreement related to the contract that has an arbitration clause must be disclosed (this would include warranties)
  • Any arbitration clause must be initialed by the buyer
  • Contract can’t have a non-negotiable arbitration clause (no take-it-or-leave-it contracts)

Disciplinary Actions/Grounds

  • TRCC can issue a cease and desist order without a hearing
  • Confirmed complaints against a builder (defined as a complaint that results in disciplinary action) will be listed on the website as a percentage of the total number of homes the builder has registered during the calendar year
  • Failure to register as a builder is a Class B misdemeanor (punishable by a fine of up to $2000 and/or 180 days in jail)
  • All of the “repeated” requirements are removed from the grounds for disciplinary action
    • After a single act listed as a ground for discipline, TRCC can revoke or suspend a builder’s license
    • Single instance of refusing to participate in the SIP
    • Single failure to offer to repair
    • Single failure to supply requested info to the TRCC
  • New ground for disciplinary action: failure to substantially complete the contract for no good reason (must have final, nonappealable court judgment)
  • New available punishment: TRCC can prohibit “an individual” from acting as a builder or from owning or operating a company that supplies goods or services to a builder for any period of time the TRCC decides (this probably couldn’t be used against companies and is meant for sole proprietors)

Homeowner recovery fund

  • Funded with all excess from TRCC in FY2010, then with 10% of all administrative penalties
  • Homeowner can get money from the fund if:
    • He gets a final court judgment & can’t get money out of the builder
    • The builder files for bankruptcy & the HO can prove damages (no requirement of court action)
    • Homeowner has damages (including attorney fees) of less than $10,000, builder hasn’t offered to repair, AND homeowner would have to take further legal action against builder to get damages
  • Each homeowner can get the lesser of actual damages or $75,000

Statutory Warranties

·        2 years for workmanship & materials (currently it’s only 1 year)

·        4 years for plumbing, electrical, heating, and a/c (currently it’s only 2 years)

·        Structural components warranty remains unchanged at 10 years

 
< Prev   Next >

 Texas, First Home Lemon Law Debated in the Nation
Homebuyers Need a Home Lemon Law

Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Texas Regulates Homebuyers
 
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

Consumer Affairs Builder Complaints

 TRCC Implosion
 TRCC Shut Down
 Sunset Report

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Build it right the first time
An interview with Janet Ahmad

Voting Texas Style
What Lawmaker is Voting for you?

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 

Texas Homebuyers
Fight for Rights

TRCC Abolish or Fix
or Pass Home Lemon Law
or
Homebuyers Bill of Rights

Pulte Homeowner Survey
Warranty & Mortgage Experience
 Click to participate

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

top of page

© 2022 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.