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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure of the cause of and remediation of |
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construction defects resulting in resale by certain homebuilders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 420, Property Code, is amended by adding |
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Section 420.005 to read as follows: |
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Sec. 420.005. FULL DISCLOSURE OF RESALE BY BUILDER. (a) |
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Before a contract may be executed or money exchanged between a |
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builder and a buyer for purchase of a home that, because of one or |
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more construction defects, the builder repurchased from a previous |
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buyer from the builder, the builder must provide to the buyer a |
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document that fully discloses the nature of and the builder's |
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remediation of each of those construction defects. |
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(b) In addition to a disclosure of the nature of each |
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construction defect and the remediation work performed, the |
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disclosure under Subsection (a) must include information relating |
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to: |
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(1) any products installed in the home relating to the |
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remediation; |
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(2) care and component warranties of those products; |
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(3) building standards used in performing the |
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remediation; and |
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(4) any risks and hazards of the home. |
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SECTION 2. Section 420.005, Property Code, as added by this |
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Act, applies only to a contract executed by a builder and a buyer as |
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described by Section 420.005, Property Code, as added by this Act, |
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on or after the effective date of this Act. A contract executed |
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before the effective date of this Act is covered by the law in |
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effect when the contract was executed, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |