Overview
Beazer Homes operates in Texas with active communities in the Dallas-Fort Worth, Houston, San Antonio, and Austin metropolitan areas. Texas is one of Beazer's largest markets by volume.
Texas law provides a specific legal framework for new home purchases through the Residential Construction Liability Act (RCLA) and the Deceptive Trade Practices Act (DTPA). Texas does not have a statutory implied warranty of habitability, which means Beazer's contractual warranty terms carry greater significance for Texas buyers. Beazer's $50 million DOJ mortgage fraud settlement originated from its Western District of North Carolina operations but involved lending practices relevant to buyers in all states.
How Texas Law Affects Your Contract
The following analysis examines how Beazer Homes's documented contract patterns interact with Texas consumer protection law.
Texas Residential Construction Liability Act (RCLA)
The RCLA (Tex. Prop. Code §§ 27.001–27.007) requires homeowners to provide written notice and a 60-day inspection period before filing a construction defect lawsuit. Beazer must be given the opportunity to inspect and offer a repair. Failure to comply can limit recoverable damages.
No Statutory Implied Warranty of Habitability
Texas does not impose a statutory implied warranty of habitability on new home builders. Beazer's express limited warranty (one-to-two years workmanship, plus limited structural coverage) is the primary warranty protection for Texas buyers.
Arbitration Provisions Under Texas Law
Mandatory arbitration clauses are generally enforceable in Texas under both the Federal Arbitration Act and the Texas General Arbitration Act. Beazer's published terms require disputes to be resolved by binding arbitration under AAA commercial rules. Buyers should verify whether their Texas purchase agreement contains a similar provision.
Texas Deceptive Trade Practices Act (DTPA)
The DTPA (Tex. Bus. & Com. Code §§ 17.41–17.63) provides buyers with remedies for misleading representations, including treble damages for knowing or intentional conduct. Given Beazer's documented history of mortgage fraud through Beazer Mortgage Corp., buyers should scrutinize all representations made during the sales process.
Texas Legal History
No state-specific litigation involving Beazer Homes in Texas has been identified in public records as of this writing.
Relevant Texas Laws
Provides buyers with additional remedies for misleading representations made during the home sales process, including the potential for treble damages in cases of knowing or intentional conduct.
Requires homeowners to provide written notice and a 60-day inspection period before filing a construction defect lawsuit against a builder.
Governs express warranty obligations for residential construction. Texas does not impose a statutory implied warranty of habitability on new home builders.
Texas Key Facts
- 1Texas does not have a statutory implied warranty of habitability for new construction.
- 2Mandatory arbitration clauses are generally enforceable under both the Federal Arbitration Act and the Texas General Arbitration Act.
- 3Texas has no statutory cooling-off period for new construction purchase agreements.
- 4The Texas Residential Construction Commission was abolished in 2009.
- 5The RCLA requires 60-day written notice to the builder before filing a construction defect lawsuit.
- 6The DTPA allows consumers to seek damages for false, misleading, or deceptive acts in the sale of goods and services, including new homes.
What Texas Buyers Should Know
- Comply with the RCLA's 60-day notice requirement. Texas law requires 60 days' written notice to Beazer before filing a construction defect lawsuit. Document all defects with photographs and written descriptions, and send notice via certified mail.
- Understand that Texas has no implied warranty of habitability. Texas does not provide a statutory implied warranty of habitability for new construction. Beazer's express limited warranty is the primary protection, making it essential to understand coverage windows and exclusions.
- Scrutinize any preferred lender arrangement. The DOJ found that Beazer Mortgage Corp. charged discount points without reducing rates and inflated home prices through improper down payment schemes. If Beazer conditions incentives on using a preferred lender, independently verify all loan terms and fees.
- Hire an independent home inspector. Beazer's construction defect litigation history, including the Trinity Homes class action in Indiana, demonstrates the importance of independent inspections. Request access at pre-drywall, pre-closing, and final walkthrough stages.