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AN ACT
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relating to claims against a contractor for construction of common |
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elements under a condominium or cooperative system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 27.001, Property Code, is amended by |
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amending Subdivisions (5) and (7) and adding Subdivision (10) to |
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read as follows: |
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(5) "Contractor": |
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(A) means: |
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(i) a builder, as defined by Section |
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401.003, contracting with an owner for the construction or repair |
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of a new residence, for the repair or alteration of or an addition |
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to an existing residence, or for the construction, sale, |
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alteration, addition, or repair of an appurtenance to a new or |
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existing residence; |
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(ii) [and] any person contracting with a |
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purchaser [an owner] for the [construction or] sale of a new |
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residence constructed by or on behalf of that person; or |
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(iii) a person contracting with an owner or |
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the developer of a condominium for the construction of a new |
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residence, for [of] an alteration of or an addition to an existing |
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residence, for repair of a new or existing residence, or for the |
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construction, sale, alteration, addition, or repair of an |
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appurtenance to a new or existing residence; and |
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(B) [. The term] includes: |
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(i) [(A)] an owner, officer, director, |
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shareholder, partner, or employee of the contractor; and |
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(ii) [(B)] a risk retention group |
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registered under Article 21.54, Insurance Code, that insures all or |
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any part of a contractor's liability for the cost to repair a |
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residential construction defect. |
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(7) "Residence" means the real property and |
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improvements for a single-family house, duplex, triplex, or |
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quadruplex or a unit and the common elements in a multiunit |
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residential structure in which title to the individual units is |
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transferred to the owners under a condominium or cooperative |
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system. |
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(10) "Developer of a condominium" means a declarant, |
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as defined by Section 82.003, of a condominium consisting of one or |
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more residences. |
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SECTION 2. Section 27.007(a), Property Code, is amended to |
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read as follows: |
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(a) A written contract subject to this chapter, other than a |
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contract between a developer of a condominium and a contractor for |
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the construction or repair of a residence or appurtenance to a |
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residence in a condominium, must contain [next to the signature
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lines] in the contract a notice printed or typed in 10-point |
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boldface type or the computer equivalent that reads substantially |
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similar to the following: |
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"This contract is subject to Chapter 27 of the Texas Property |
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Code. The provisions of that chapter may affect your right to |
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recover damages arising from [the performance of this contract] a |
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construction defect. If you have a complaint concerning a |
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construction defect [arising from the performance of this contract] |
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and that defect has not been corrected as may be required by law or |
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by contract [through normal warranty service], you must provide the |
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notice required by Chapter 27 of the Texas Property Code to the |
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contractor by certified mail, return receipt requested, not later |
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than the 60th day before the date you file suit to recover damages |
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in a court of law or initiate arbitration. The notice must refer to |
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Chapter 27 of the Texas Property Code and must describe the |
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construction defect. If requested by the contractor, you must |
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provide the contractor an opportunity to inspect and cure the |
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defect as provided by Section 27.004 of the Texas Property Code." |
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SECTION 3. The changes in law made by this Act apply only to |
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a contract that was entered into on or after the effective date of |
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this Act. A contract that was entered into before the effective |
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date of this Act is governed by the law in effect when the contract |
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was entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3147 was passed by the House on May |
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10, 2007, by the following vote: Yeas 139, Nays 0, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3147 was passed by the Senate on May |
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23, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |