What are the Mandatory Residential Remodel Contract Notices?

Texas Construction Attorneys

What are the Mandatory Residential Remodel Contract Notices?

Know Your Rights Warning: Section 41.007(a)(3) of the Texas Property Code requires the following Notice when improvements are made to an existing homestead Property

IMPORTANT NOTICE:You and your contractor are responsible for meeting the terms and conditions of this contract.If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home.KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW.

Failure to include this Notice is a violation of the Deceptive Trade Practices Act.

Mandatory Three Day Right to Cancel: Pursuant to Business and Commerce Code, Chapter 601, if: (1) a Contractor solicits business from a homeowner at any location other than the Contractor’s office; and (2) the Contract is executed anywhere other than at the Contractor’s office, then the Homeowner has the absolute right to cancel the Contract within three business days after executing the Contract.A Contract subject to Chapter 601 must contain the following mandatory Notice in at least 10 font boldface type located just below or above the signature lines:

YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

Failure to include the mandatory Notice and the Notice of Cancellation Form renders the Contract void and unenforceable and subjects the Contractor to actual damages suffered by the Homeowner, if any, and reimbursement of reasonable attorneys’ fees and court costs.

RCLA—Chapter 27 Notice: Pursuant to Texas Property Code, Chapter 27, referred to as the “Residential Construction Liability Act” (“RCLA”), every Contract for either new construction or improvements to an existing residence (even non-homestead Properties), must contain the following Notice in at least 10-point boldface font.Failure to include this Notice entitles the Property Owner to a $500.00 civil penalty from the Contractor.

THIS AGREEMENT IS SUBJECT TO CHAPTER 27 OF THE TEXAS PROPERTY CODE. THE PROVISIONS OF THAT CHAPTER MAY AFFECT YOUR RIGHT TO RECOVER DAMAGES ARISING FROM A CONSTRUCTION DEFECT. IF YOU HAVE A COMPLAINT CONCERNING A CONSTRUCTION DEFECT AND THAT DEFECT HAS NOT BEEN CORRECTED AS MAY BE REQUIRED BY LAW OR BY AGREEMENT, YOU MUST PROVIDE THE NOTICE REQUIRED BY CHAPTER 27 OF THE TEXAS PROPERTY CODE TO THE CONTRACTOR BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, NOT LATER THAN THE 60TH DAY BEFORE THE DATE YOU FILE SUIT TO RECOVER DAMAGES IN A COURT OF LAW OR INITIATE ARBITRATION. THE NOTICE MUST REFER TO CHAPTER 27 OF THE TEXAS PROPERTY CODE AND MUST DESCRIBE THE CONSTRUCTION DEFECT. IF REQUESTED BY THE CONTRACTOR, YOU MUST PROVIDE THE CONTRACTOR AN OPPORTUNITY TO INSPECT AND CURE THE DEFECT AS PROVIDED BY SECTION 27.004 OF THE TEXAS PROPERTY CODE.

Conspicuous Binding Arbitration Provision: Pursuant to Texas Property Code, Section 41.007(3)(c), for improvements made to a homestead Property, a binding arbitration provision is only valid and enforceable if it is conspicuously printed, e.g., in all caps, or typed in at least 10-point bold font.

Waiver of List of Subcontractors and Material Suppliers: For new or existing residential construction projects, pursuant to Texas Property Code, Section 53.256, unless otherwise waived as described below, before work begins, the Original Contractor must: (1) provide the Homeowner with a written list that identifies by name, address, and telephone number each Subcontractor and Material/Equipment Supplier who the Contractor intends to hire for the Project; and (2) provide the Homeowner with an updated list not later than the 15th day after the date a Subcontractor or Material/Equipment Supplier is added or deleted from the list.The list must contain the following notice conspicuously printed, stamped, or typed in a size equal to at least 10-point boldface or the computer equivalent:

NOTICE:THIS LIST OF SUBCONTRACTORS AND SUPPLIERS MAY NOT BE A FINAL LISTING. UNLESS YOU SIGN A WAIVER OF YOUR RIGHT TO RECEIVE UPDATED INFORMATION, THE CONTRACTOR IS REQUIRED BY LAW TO SUPPLY UPDATED INFORMATION, AS THE INFORMATION BECOMES AVAILABLE, FOR EACH SUBCONTRACTOR OR SUPPLIER USED IN THE WORK PERFORMED ON YOUR RESIDENCE.

Residential Disclosure Statement: Pursuant to Texas Property Code Section 53.255, before a Residential Construction Contract is executed, the Contractor is required to provide the Property Owner with a Disclosure Statement.

Texas Manual Residential Remodel Contract Provisions