(a) A written agreement between a contractor and a homeowner may provide that, except as provided by Subsection (b), if the reasonable cost of repairs necessary to repair a construction defect that is the responsibility of the contractor exceeds an agreed percentage of the current fair market value of the residence, as determined without reference to the construction defects, then, in an action subject to this chapter, the contractor may elect as an alternative to the damages specified in Section 27.004(g) that the contractor who sold the residence to the homeowner purchase it.
(b) A contractor may not elect to purchase the residence under Subsection (a) if:
(1) the residence is more than five years old at the time an action is initiated; or
(2) the contractor makes such an election later than the 15th day after the date of a final, unappealable determination of a dispute under Subtitle D, Title 16, if applicable.
(c) If a contractor elects to purchase the residence under Subsection (a):
(1) the contractor shall pay the original purchase price of the residence and closing costs incurred by the homeowner and the cost of transferring title to the contractor under the election;
(2) the homeowner may recover:
(A) reasonable and necessary attorney's and expert fees as identified in Section 27.004(g) ;
(B) reimbursement for permanent improvements the owner made to the residence after the date the owner purchased the residence from the builder; and
(C) reasonable costs to move from the residence; and
(3) conditioned on the payment of the purchase price, the homeowner shall tender a special warranty deed to the contractor, free of all liens and claims to liens as of the date the title is transferred to the contractor, and without damage caused by the homeowner.
(d) An offer to purchase a claimant's home that complies with this section is considered reasonable absent clear and convincing evidence to the contrary.
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