House Bill 1038, recently passed by the Legislature, made many changes to the Texas Residential Construction Commission. Registration requirements for builders and remodelers are different, as is the commission’s regulatory authority. A brief summary of the changes is listed below. To see Property Code Title 16, click here.

Home Registration
Builder/Remodeler Continuing Education
Builder/Remodeler Registration
Required Contract Provisions

Compliance Advisory

New Laws and Rules Affecting Builders and Remodelers
Starting September 1, 2007

Home Registration

• Construction on “homeowner-owned” property (new construction, material improvements, and interior renovations) are registered at the EARLIER occurring date:
  • Occupancy (new home only)
  • Substantial completion
  • Issuance of a certificate of occupancy or completion
    
• Interior renovations of $10,000 or more must be registered
  
• Home registration fees are $40 per home. Online registration is discounted and is $25 per home. Late filing fees are an additional $40
  
• All builder contracts with homeowners must contain the builder registration information and commission complaint information
  
• County Inspections – Upcoming September 2008 – the builder/remodeler must provide for inspections in an unincorporated area and report their completion to the commission

Builder/Remodeler Continuing Education

• Builders and remodelers with active certificates of registration in good standing on August 31, 2007, must complete five (5) hours of continuing education every five (5) years. One hour must address ethics and two hours must address limited warranties, building and performance standards and the International Residence Code
  
• Builders and remodelers approved for active registration or reinstatement after Sept. 1, 2007, must complete five hours in the first year of registration, including one hour of ethics, two hours addressing limited warranties, building and performance standards and the International Residence Code
  
• You may wish to consult the list of currently eligible continuing education courses

Builder/Remodeler Registration

• Remodelers signing contracts for interior renovations of more than $10,000 must register
• Company address changes must be reported within thirty (30) days of change and a corrected certificate obtained. Failure to report an address change may result in the company receiving a penalty or not receiving a renewal notice
• Builder numbers are not transferable to other companies, even if ownership is the same, and may not be lent or borrowed to anyone. Property Code Section 418.001(16) and (17)

Required Contract Provisions

• a notice to the consumer in at least 10-point bold type or the computer equivalent that gives the telephone number of the commission and states:
  
  STATE LAW REQUIRES THAT A PERSON HOLD A CERTIFICATE OF REGISTRATION FROM THE TEXAS RESIDENTIAL CONSTRUCTION COMMISSION IF THE PERSON CONTRACTS TO CONSTRUCT A NEW HOME OR IF THE PERSON CONTRACTS TO CONSTRUCT A MATERIAL IMPROVEMENT TO AN EXISTING HOME OR CERTAIN IMPROVEMENTS TO THE INTERIOR OF AN EXISTING HOME AND THE TOTAL COST OF THE IMPROVEMENT IS $10,000 OR MORE (INCLUDING LABOR AND MATERIALS).
  
  YOU MAY CONTACT THE COMMISSION AT 877-651-8722 TO FIND OUT WHETHER THE BUILDER HAS A VALID CERTIFICATE OF REGISTRATION. THE COMMISSION HAS INFORMATION AVAILABLE ON THE HISTORY OF BUILDERS, INCLUDING SUSPENSIONS, REVOCATIONS, COMPLAINTS, AND RESOLUTION OF COMPLAINTS.
  
  THIS CONTRACT IS SUBJECT TO CHAPTER 426, PROPERTY CODE. THE PROVISIONS OF THAT CHAPTER GOVERN THE PROCESS THAT MUST BE FOLLOWED IN THE EVENT A DISPUTE ARISES OUT OF AN ALLEGED CONSTRUCTION DEFECT. IF YOU HAVE A COMPLAINT CONCERNING A CONSTRUCTION DEFECT YOU MAY CONTACT THE COMMISSION AT THE TOLL-FREE TELEPHONE NUMBER TO LEARN HOW TO PROCEED UNDER THE STATE-SPONSORED INSPECTION AND DISPUTE RESOLUTION PROCESS.
  
• A binding arbitration notice (if the contract includes a provision requiring the parties to submit a dispute arising under the contract to binding arbitration) must be conspicuously printed or typed in a size equal to at least 10-point bold type or the computer equivalent.
  
• The builder's name and certificate of registration number.

• The contractor’s Residential Construction Commission registration number if the contractor is required to register with the commission.
  
• The commission’s address and phone number.