How HB 2024 Affects Home Buyers in Texas

HB 2024 Can Reduce a Home Builders Liability Exposure

The Texas home-building industry experienced a significant shift with the enactment of HB 2024 during the 88th session of the Texas Legislature. This legislation has introduced notable changes to the Statute of Repose, impacting liability exposure for builders. In this blog post, we will explore the key aspects of HB 2024 and how it can potentially reduce a home builder's liability exposure. Let's dive into the details:

1. Previous Statute of Repose Timeline:

• The Statute of Repose previously allowed home buyers to assert claims against builders within a period of 10 years after substantial completion of the home.
• Additionally, if a builder received written notice of an issue before the expiration of the 10-year period, an additional two years were granted from the date of claim presentation.

2. The Impact of HB 2024:

• HB 2024 introduces a reduction in the Statute of Repose for Builders, shortening the timeframe from 10 years to 6 years.
• The revised six-year period applies specifically to one- and two-family homes or townhouses of not more than three stories.
• However, to benefit from the reduced Statute of Repose, builders must provide the home buyer with a qualifying express written warranty.
• This warranty should offer coverage for workmanship, distribution systems, and the major structural components of the home.

3. Extension of the Six-Year Period:

• It's important to note that the six-year period can be extended by an additional one year if a builder receives written notice of an issue before the expiration of the initial six-year timeframe.
• By promptly addressing and documenting any issues reported by the home buyer, builders can potentially extend the Statute of Repose, allowing for greater protection for the builder against liability claims.