State Representative Jessica Farrar and David Leibowitz have filed three bills (HB295, HB325 and HB326) designed to level the foundation of the builder friendly Texas Residential Construction Commission. More bills are expected to be filed including one from State Representative Todd Smith who initially asked for an investigation of the Commission by the Comptroller. Her report was in depth and worth the time to read. Homeowners Against Deficient Dwellings (my organization) supports the bills by Farrar and Leibowitz.Although the bills currently filed will greatly improve the TRCC, one bill is still needed. In 2003 HB730, which created the Commission, waived the implied warranty of good workmanship and adopted the 1-2-10 year warranties currently in use today. This was a consumer's nightmare, and a builders wet dream.
The limitation of 1 year for good workmanship, 2 years for AC heating, and plumbing, and 10 years for structural is written into law therefore the Warranty and Standards Working Group has no authority to amend these. With this limitation common sense defects seen in new home construction are no longer covered and homeowners cannot use the services of the TRCC to resolve them. Examples of defects that are not covered by the TRCC warranties include:
- Hardwood floors coming off the floor after the first 12 months
- Cracks in bricks, walls, or exterior after the first 12 months
- Tile cracking and coming off the floor after the first 12 months
- Carpet deteriorating, coming apart, after the first 12 months
- Paint washing off the exterior after the first 12 months
- Paint flaking off after the first 12 months
- Shingles falling off the house after the first 12 months (seriously)
- Air conditioner requiring replacement after the first 24 months
Homeowners with these defects cannot apply for the State Sponsored Inspection and Resolution Process (SIRP) which the builders are very proud of. Instead their application and fees are simply returned with a recommendation to "get an attorney", exactly what the Commission was designed to prevent.
The solution? Allow the Commission, based upon inputs from the Warranty and Standards Working Group to determine warranty limitations with a minimum of 1-2-10 years. The working group could then determine what is reasonable coverage for a new home. Replacing an air conditioner after just 2 years is unreasonable. So is hardwood floors and tile coming up off the floor after just 1 year. The Commission should be able to determine the warranty limitations on every item which will then all homeowners to use the services of the TRCC and prevent legal action.
After all, preventing the need for legal action was the original purpose of the TRCC.
The solution? Allow the Commission, based upon inputs from the Warranty and Standards Working Group to determine warranty limitations with a minimum of 1-2-10 years. The working group could then determine what is reasonable coverage for a new home. Replacing an air conditioner after just 2 years is unreasonable. So is hardwood floors and tile coming up off the floor after just 1 year. The Commission should be able to determine the warranty limitations on every item which will then all homeowners to use the services of the TRCC and prevent legal action.
After all, preventing the need for legal action was the original purpose of the TRCC.
4 comments:
Is there any reasonable expectation that these bills would be passed by a Republican legislature bought and paid for by Bob Perry?
Even less expectation that they would be signed into law by a governor bought and paid for by Bob Perry.
Something will be passed because of the negative exposure, but it will be far far less than what will be needed.
It will be a "compromise" bill by the attorneys for the builders and attorneys that have in the past represented the consumer.
Dont look for anything good to come out of it.
One of the first things a new legislator is supposed to learn is the rule that you:
SHOULD RUN FROM ANYONE WHO WANTS TO BE REGULATED!
The "Perry Commission" is a splendid example of how that really means is what they want is "restraint of trade" (you can't do it unless they license you) and "cover our legal a.."
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