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Construction Law
Complying with Texas construction law isn't easy – even for experienced contractors. Construction contract law for residential work in Texas requires notices and disclosures designed to alert property owners about problems that can occur in residential construction projects. Texas construction contract law is intended to inform and protect consumers when buying construction services. For example, Texas Property Code § 53.255 requires that contractors deliver a 2-page disclosure statement before the contract is signed. Texas Property Code § 41.007(a) requires a notice in contracts for building or remodeling a residential property that qualifies as a homestead. Failure to include this notice constitutes a false, misleading, or deceptive act or practice under § 17.46 of the Texas Business and Commerce Code. The penalty is treble the amount of actual damages plus attorney fees plus costs and prejudgment interest on actual damages. The Residential Construction Liability Act (Texas Property Code § 27.001 to 27.007) gives an owner the right to recover $500 from a contractor if the contract omits a specific statement. Property owners have no legal exposure for a defective construction contract.
| The notices and disclosures required by Texas construction contract law fill several contract pages. These Texas disclosures are in addition to disclosures and notices required by federal law (truth-in-lending, 3-day right to cancel and insulation). The shortest legal Texas home improvement contract is about eight pages long. Contract requirements vary with the type of construction: residential, commercial, public works or home improvement. Of these, home improvement contracts are required to have the most detailed notices and disclosures. |
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