BILL ANALYSIS

H.B. 3020

By: Leibowitz

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

When a home is resold, a seller must disclose to a buyer all known defects of the house.  Such defects may include the condition of the foundation, roof, ceilings and walls, water penetration, aluminum wiring, termites, kitchen appliances, water heater, central air conditioning, security system, smoke detectors, and plumbing.  However, when a new home is sold by a builder, no reporting of defects is required, even if a home was bought back from a previous owner by the builder due to major defects.

H.B. 3020 requires a builder who has repurchased a home because of defects to disclose such defects to a new homebuyer along with the steps taken to remediate the problems.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3020 amends the Property Code to require a builder, before the execution of a contract or the exchange of money between a builder and a buyer for purchase of a home that the builder repurchased from a previous buyer due to one or more construction defects to provide to the buyer a document that fully discloses the nature of and the builder's remediation of each of those construction defects.  The bill requires the disclosure also to include information relating to any products installed in the home relating to the remediation, the care and component warranties of those products, the building standards used in performing the remediation, and any risks and hazards of the home.

EFFECTIVE DATE

September 1, 2009.