HOMEOWNERS FOR BETTER BUILDING
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FOR IMMEDIATE RELEASE                                                   Contact:  Janet Ahmad
August 11, 2004                                                                           (210) 402-6800

TRCC drafts State Homebuyer Warranty to protect Homebuilders

TRCC Public Hearing
Wednesday, August 11 - 6:00 p.m.
Double Tree Hotel, Salon I

            San Antonio, Texas – Homebuyers say the Texas Residential Construction Commission (TRCC) is a building industry scam designed to protect homebuilders from liability and promotes corporate irresponsibility. Evidence of these claims begins with the makeup of the current commission and its abuse of powers which altered the intent of the law.  

Despite provisions in the Texas Residential Construction Commission Act (TRCCA) for the appointment of  three “General Public members” to the commission, Governor Rick Perry appointed the current nine member TRCC commissioners all of whom have DIRECT ties to the building industry.  In fact, John R. Krugh, Corporate Council for Perry Homes, the biggest contributor to Gov. Perry’s election campaign, is recognized as the principle author of the 2002 TRCCA legislation.  He is now one of the nine commissioners appointed by the Governor.  

Commissioners changed the intent of HB730; Section 3.01 of the TRCCA, which mandates that any home built after September 1, 2003 is subject to the Act.  However, on March 24, 2004 Commissioners voted unanimously to change the law by interpreting the Act to be retroactive for all home still under warranty, built since September 1, 1993.  

“Currently, homebuilders and their new commission are in the process of writing a State Warranty and Standards designed to be a painful lesson for homebuyers expecting a quality built home with a 10-year-warranty for their 30-year-mortgage commitment.  The State Warranty proposal, however, contains catch-all-exclusions. For examples, unless reported during walk-through, the Builder has no responsibility to repair. Many defects in new homes built in Texas will have absolutely No Warranty.  Exclusions are abundant and generously drafted to assure homebuilders are absolved of most responsibility for defects,” said Janet Ahmad, President of HomeOwners for Better Building.  See Fact Sheet – TRCC State Limited Warranty enclosed in Press Packet.  

HB730 also abolished the Texas State Implied Warranty and assures that a breach of warranty is not a violation of the Deceptive Trade Practice Act (DTPA), thus nullifying state consumer laws which were passed to protect buyers with defective new homes.  

 “Consumers get more protection and better quality products when buying toasters, TV’s, microwaves and cars than a home, the most expensive consumer product made and sold in America.  The State of Texas now officially protects Homebuilders if they build defective homes,” concluded Janet Ahmad.