Jim Forsyth WOAI News

Homebuilders would have to repurchase new homes if there is a problem that can't be fixed.

There is a proposal in the Legislature to establish a 'Lemon Law' for new homes like is currently on the books for new cars, 1200 WOAI news reports.

Three members of the Legislature have introduced a bill that would require that homebuilders buy back homes if there is a major defect which has not been satisfactorily repaired after three tries.

"The foundation cracks, you fix it," said Janet Ahmad of the San Antonio based group 'Home Owners for Better Building.' "It is still not right, you fix it again. It’s still not right, and you fix it again. If you still can't get it right, then the homeuilder buys back the home."

Ahmad says there was an attempt to regulate home builders with the old Texas Residents Construction Commission, but that became simply a tool of the home builders, so it was abolished. Currently, she says home building is the largest consumer activity in the state which has no regulatory framework at all.

Ahmad says a Home 'Lemon Law' would not only help home buyers. She says it would help home builders improve their image, strengthen the resale value of homes, and make the image of Texas-built homes more reliable.

"We have better cars since they started a car Lemon Law," she said. "We have enforceable warranties. They don't have that with homes."

Ahmad says the 'home warranties' often thrown in with new home purchases do a lot more to protect the home builders and pour money into the pockets of the firms which participate in the warranties than they do to help home buyers.

"It's not a very difficult thing to do," she said about working under a new home 'Lemon Law.' They'll learn that they have to build them right the first time."

She says the Lemon Law would be for a fixed period of time and would only apply to homes which are purchased new by the resident.