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Texas Property Code - PROP § 27.0042. Conditional Sale to Builder

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A written agreement between a contractor and a homeowner may provide that, 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(b) Repealed by Acts 2023, 88th Leg., ch. 441 (H.B. 2022), § 8(2), eff. Sept. 1, 2023.

(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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Cite this article: FindLaw.com - Texas Property Code - PROP § 27.0042. Conditional Sale to Builder - last updated January 01, 2024 | https://codes.findlaw.com/tx/property-code/prop-sect-27-0042/

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