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Texas Laws | Property Code
PROPERTY CODE
TITLE 4. ACTIONS AND REMEDIES

Added by Acts 2003, 78th Leg., ch. 458, Sec. 2.05, eff. Sept. 1, 2003. (2340)

Sec. 27.005. LIMITATIONS ON EFFECT OF CHAPTER. (2341)(Text)

This chapter does not create a cause of action or derivative liability or extend a limitations period. (2342)

Added by Acts 1989, 71st Leg., ch. 1072, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 189, Sec. 7, eff. Sept. 1, 1999. (2343)

Sec. 27.006. CAUSATION. (2344)(Text)

In an action to recover damages resulting from a construction defect, the claimant must prove that the damages were proximately caused by the construction defect. (2345)

Added by Acts 1993, 73rd Leg., ch. 797, Sec. 6, eff. Aug. 30, 1993. (2346)

Sec. 27.007. DISCLOSURE STATEMENT REQUIRED. (2347)(Text)

(a) A written contract subject to this chapter, other than a contract between a developer of a condominium and a contractor for the construction or repair of a residence or appurtenance to a residence in a condominium, must contain in the contract a notice printed or typed in 10-point boldface type or the computer equivalent that reads substantially similar to the following: (2348)

"This contract is subject to Chapter 27 of the Texas Property Code. The provisions of that chapter may affect your right to recover damages arising from a construction defect. If you have a complaint concerning a construction defect and that defect has not been corrected as may be required by law or by contract, you must provide the notice required by Chapter 27 of the Texas Property Code to the contractor by certified mail, return receipt requested, not later than the 60th day before the date you file suit to recover damages in a court of law or initiate arbitration. The notice must refer to Chapter 27 of the Texas Property Code and must describe the construction defect. If requested by the contractor, you must provide the contractor an opportunity to inspect and cure the defect as provided by Section 27.004 of the Texas Property Code." (2349)

(b) If a contract does not contain the notice required by this section, the claimant may recover from the contractor a civil penalty of $500 in addition to any other remedy provided by this chapter. (2350)

(c) This section does not apply to a contract relating to a home required to be registered under Section 426.003. (2351)

Added by Acts 1999, 76th Leg., ch. 189, Sec. 8, eff. Sept. 1, 2000. Amended by Acts 2003, 78th Leg., ch. 458, Sec. 2.06, eff. Sept. 1, 2003. (2352)

Amended by: (2353)

Acts 2007, 80th Leg., R.S., Ch. 750 (H.B. 3147), Sec. 2, eff. September 1, 2007. (2354)

Acts 2007, 80th Leg., R.S., Ch. 843 (H.B. 1038), Sec. 4, eff. September 1, 2007. (2355)

CHAPTER 28. PROMPT PAYMENT TO CONTRACTORS AND SUBCONTRACTORS (2356)(Text)

Sec. 28.001. DEFINITIONS. (2357)(Text)

In this chapter: (2358)

(1) "Contractor" means a person who contracts with an owner to improve real property or perform construction services for an owner. (2359)

(2) "Improve" means to: (2360)

(A) build, construct, effect, erect, alter, repair, or demolish any improvement on, connected with, or beneath the surface of real property; (2361)

(B) excavate, clear, grade, fill, or landscape real property; (2362)

(C) construct a driveway or roadway; (2363)

(D) furnish any material, including trees or shrubbery, for the purpose of taking any action described by Paragraphs (A)-(C) of this subdivision; or (2364)

(E) perform any labor on or in connection with an improvement. (2365)

(3) "Improvement" includes all or any part of: (2366)

(A) a building, structure, erection, alteration, demolition, or excavation on, connected with, or beneath the surface of real property; and (2367)

(B) the act of clearing, grading, filling, or landscaping real property, including constructing a driveway or roadway or furnishing trees or shrubbery. (2368)

(4) "Owner" means a person or entity, other than a governmental entity, with an interest in real property that is improved, for whom an improvement is made, and who ordered the improvement to be made. (2369)

(5) "Real property" includes lands, leaseholds, tenements, hereditaments, and improvements placed on the real property. (2370)

(6) "Subcontractor" means a person who contracts to furnish labor or material to, or has performed labor or supplied materials for, a contractor or another subcontractor in connection with a contract to improve real property. (2371)

Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993. (2372)

Sec. 28.002. PROMPT PAY REQUIRED. (2373)(Text)

(a) If an owner or a person authorized to act on behalf of the owner receives a written payment request from a contractor for an amount that is allowed to the contractor under the contract for properly performed work or suitably stored or specially fabricated materials, the owner shall pay the amount to the contractor, less any amount withheld as authorized by statute, not later than the 35th day after the date the owner receives the request. (2374)

(b) A contractor who receives a payment under Subsection (a) or otherwise from an owner in connection with a contract to improve real property shall pay each of its subcontractors the portion of the owner's payment, including interest, if any, that is attributable to work properly performed or materials suitably stored or specially fabricated as provided under the contract by that subcontractor, to the extent of that subcontractor's interest in the owner's payment. The payment required by this subsection must be made not later than the seventh day after the date the contractor receives the owner's payment. (2375)

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