Texas Register, Volume 33, Number 1, Pages 1-358, January 4, 2008 Page: 27
358 p. ; 28 cm.View a full description of this periodical.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
SIRP for an alleged defect that is discovered during an appli-
cable warranty period, so that the filing period will end not later
than the 90th day after the date the applicable warranty period
expires, rather than the 30th day after the warranty period
expires.
A third deadline for SIRP requests was added to Property Code,
426.006, by H.B. 1038. Property Code, 426.006(b), estab-
lishes a new deadline for a SIRP request related to an alleged
defect that would violate the statutory warranty of habitability and
was not discoverable by a reasonable, prudent inspection or ex-
amination of the home or improvement within the applicable war-
ranty period. For these defects, Property Code, 426.006(b),
provides that a SIRP must be requested on or before the second
anniversary of the date of discovery of the conditions claimed
to be evidence of the construction defect and not later than the
10th anniversary of the date of the initial transfer of title from the
builder to the initial owner of the home or improvement that is
the subject of the dispute or, if there is no closing, the date that
the parties entered into the contract for construction of the im-
provement. The amendments proposed in 313.4(b) implement
these changes to Property Code, 426.006(b).
Amendments to 313.5. Filing a Request to Initiate the SIRP.
The commission proposes amendments to 313.5, Filing a Re-
quest to Initiate the SIRP. The proposed amendments are neces-
sary to implement amendments to Property Code, 426.004(c),
that were enacted by the 80th Texas Legislature in H.B. 1038.
Previously, Property Code, 426.004(c), provided that the per-
son who submits a request to initiate the SIRP must pay to the
commission the home registration fee for the home if title to the
home was transferred to the initial homeowner on or before Jan-
uary 1, 2004, or if the contract for improvements or additions
between the builder and the homeowner was entered into be-
fore January 1, 2004. House Bill 1038 amended Property Code,
426.004(c), by requiring the commission to register homes that
are the subject of a request to initiate the SIRP for which the
title transfer to the initial homeowner or the date of the contract
for improvements or additions occurred prior to January 1, 2004.
The statute requires the builder to pay the registration fee.
The proposed amendments to 313.5(b) implement these statu-
tory changes by clarifying that, if the affected home is not regis-
tered with the commission at the time that a SIRP request is filed,
the commission shall register the home and the builder shall pay
the registration fee for the home. The proposed amendments
assign responsibility to the builder to pay the registration fee for
a home that has not previously been registered with the commis-
sion and that is the subject of the SIRP. The proposed amend-
ments eliminate questions and the need for the commission to
make factual determinations regarding whether a homeowner
who has initiated the SIRP must register the home or pay the
home registration fee. Therefore, the proposed amendments will
allow the commission to more efficiently register homes, initiate
the SIRP, clarify the builder's role in the registration process, and
protect the public.
Amendments to 313.6. Information Required for the Request.
The commission proposes amendments to 313.6, Information
Required for the Request to implement statutory modifications,
to change the qualifications that establish a builder under the Act,
and require that evidence of the sale of a new home or the date
of an agreement for construction, including any change orders,
is provided as a part of a request, if the documents exist.Previously, Property Code, 401.003(a)(3), defined a builder
to include a person who constructs or supervises or manages
the construction of an improvement to the interior of an existing
home when the cost of the work exceeds $20,000. House Bill
1038 expanded this definition by including a person who sells,
constructs, or supervises or manages the construction of, or
contracts for the construction of or the supervisions or manage-
ment of the construction of, an improvement to the interior of
an existing home when the cost of the work exceeds $10,000.
The proposed amendments to 313.6(a) are necessary to
implement this change. To initiate the SIRP for an alleged
defect, the requestor would have to establish that the contract
or the construction relates to an interior improvement with costs
in excess of $10,000.
The amendments proposed to 313.6(a) also change the
dates to be included with the SIRP. Previously, this subsec-
tion required a SIRP requestor to provide the date on which
the agreement describing the transaction was signed or work
commenced, whichever is earlier. The proposed amendments
delete the requirement that the SIRP requestor must provide
the date that work commenced and add a requirement that a
SIRP requestor must provide the date on which the construction
of the improvement was substantially completed. This change
is necessary to implement the amendment of Property Code,
426.001 (a)(2)(B), in H.B. 1038, which requires a SIRP request
to be filed not later than the 30th day after the 10th anniversary
of the date on which the construction of an improvement was
substantially completed for transactions in which there was
no closing in which title is transferred. Although H.B. 1038
deleted the reference in Property Code, 426.001(a)(2)(B), to
the date that a contract for improvements was entered into, the
proposed amendments to 313.6(a)(1)(B) retain the require-
ment that a SIRP requestor must provide the date on which
the agreement describing the transaction was signed. This is
because H.B. 1038 also added a new requirement in Property
Code, 426.006(b)(2), that a SIRP request for a transaction in
which there was no closing in which title was transferred and
for an alleged defect that would violate the statutory warranty of
habitability that was not discoverable by a reasonable, prudent
inspection or examination of the home or improvement within
the applicable warranty period must be submitted not later
than the 10th anniversary of the date on which the contract
for construction of the improvement was entered into. Thus,
by requiring that a SIRP requestor provide both the date that
construction of the improvement was substantially completed
and the date that the agreement describing the transaction
was signed, the commission can determine whether the SIRP
request is eligible for its consideration under Property Code,
426.001 (a)(2)(B) and 426.006(b)(2).
Proposed amendments to 313.6 add a requirement that the
SIRP include a copy of the sales or construction contract and
change order, if any. If these documents are in existence and
submitted as part of the SIRP, commission staff is able to review
documents in a more efficient manner.
Proposed amendments to 313.6(a) replace the reference to
"chapter" with reference to "title" to indicate that the cross ref-
erence is to a rule section within Title 10 and to conform with
Texas Register rule format guidance.
Amendments to 313.7. Notice of the Request.
The commission proposes amendments to 313.7, Notice of the
Request, necessary to implement changes made by the 80thPROPOSED RULES January 4, 2008 33 TexReg 27
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
Texas. Secretary of State. Texas Register, Volume 33, Number 1, Pages 1-358, January 4, 2008, periodical, January 4, 2008; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth90775/m1/26/: accessed April 23, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.