Houston Democrats

Many victims are shocked to learn the consumer friendly Texas Deceptive Trade Practice Act no longer applies to homebuilders. Instead it has been replaced with a long complicated process created by the homebuilding industry 15 years ago

This process, the Residential Construction Liability Act, or RCLA was the first “right to repair” law passed in the nation. It requires a long process of inspections and offers of repair. It limits the amount that can be awarded in a lawsuit. RCLA R-C-L-A also stands for Requires Competent Legal Assistance requiring a specialized attorney versed in construction law. The process can also last longer than it took to build the home with absolutely no guarantee of resolution.

Due to the complete failure of RCLA, our elected officials in 2003 created the Texas Residential Construction Commission or the TRCC pronounced appropriately TRICK.. House bill 730 was drafted by the homebuilding industry with absolutely no input from consumer organizations. It was filed by State Representative Alan Ritter of Beaumont. who is a member of the Texas Association of Builders and owns a lumber company, which sells lumber, to builders.

Needless to say, the Commission was flawed from the beginning and is well stacked against the consumer. It created a long, complicated, and costly dispute resolution process that must be followed before RCLA and before a suit can be filed. The processing fee is at least $350 and could take up to 3 months to complete with again, no guarantee of resolution or enforcement by the Commission. The Commission also created warranty standards so limited that a new $10,000 car has more protection than a new $100,000 home.

After following the long and costly procedures of RCLA and the TRCC, a homeowner will find they cannot sue the builder in front of a judge and jury, but instead are bound to a kangaroo court of arbitrators. Arbitration has been fond to be extremely costly, grossly unfair and the subject of 4 different investigations. This combination of Arbitration, RCLA and the TRCC also makes it extremely difficult if not impossible to find an attorney willing to tackle construction defect claims.

In response, Houston State Representative Jessica Farrar has filed HB3404 which will correct the major flaws of the TRCC. But the homebuilding industry will fight any changes to their Commission claiming it provides unprecedented consumer protection for homeowners.

The building industry has advocated for the consumer for over 15 years and consumers have little if anything to show for it. It should be clear, trusting the homebuilding industry to advocate for your family is like trusting a terrorist to advocate for homeland security.