New Construction Defect Law Effective September 2015

Becoming effective on September 1, 2015, the Texas Legislature recently passed a construction defect law that is favorable for homebuilders. This law states that a condominium association must take major steps before filing a construction defect claim.

A condominium association with eight (8) or more units cannot engage in litigation or arbitration until it first takes the following actions:

  1. The Association — or its construction defect attorney — must hire a licensed professional engineer to perform an investigation and issue a report identifying the defects at the community and their location, among other information.
  2. The Association must hold a meeting to secure the approval of greater than 50% of its voting members to move forward with the claim.
  3. Prior to the meeting, the Association must provide the members with a notice that includes the engineer’s report, and additional information related to the claim including the projected costs of the litigation and the proposed agreement with the Association’s attorney.
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In summary, it will be more challenging to hold homebuilders responsible for defective construction. Although, it’s not impossible to overcome these new barriers.

If you are involved in a condo community that is experiencing construction defect issues, we highly recommend that you present your claims to builders before September 1, 2015.

If you have any questions, please give us a call at 1-800-996-1770.

construction defect law