Overview
Perry Homes is one of Texas's largest privately-held homebuilders, operating exclusively in the state across Houston, San Antonio, Austin, and Dallas-Fort Worth. Founded in 1967 by Bob Perry, the company builds approximately 4,000-5,000 homes per year and has consistently ranked among the top homebuilders in Texas by volume.
Texas's Residential Construction Liability Act (RCLA) governs construction defect claims. The Texas Supreme Court addressed Perry Homes' arbitration practices in the landmark case Perry Homes v. Cull (2008), which established an important precedent for arbitration waiver analysis in Texas construction disputes.
How Texas Law Affects Your Contract
The following analysis examines how Perry Homes's documented contract patterns interact with Texas consumer protection law.
Texas Residential Construction Liability Act (RCLA)
The Texas RCLA (Tex. Prop. Code Chapter 27) requires 60 days' written notice to the builder before filing suit for construction defects. Perry Homes' contracts operate under this framework. The builder has the right to inspect and offer to repair, which gives significant control over the initial remedy process.
Arbitration Waiver — Perry Homes v. Cull (2008)
In Perry Homes v. Cull, the Texas Supreme Court held that Perry Homes waived its right to compel arbitration through substantial participation in litigation. This case established the standard for analyzing arbitration waiver in Texas: whether a party substantially invoked the judicial process to the other party's detriment. Buyers should be aware that the builder's arbitration clause is a standard feature of Perry Homes contracts.
Texas Deceptive Trade Practices Act (DTPA)
The Texas DTPA provides remedies including treble damages for knowing violations. However, the RCLA may limit the availability of DTPA claims in construction defect cases. Buyers should understand how these statutes interact when pursuing claims against Perry Homes.
10-Year Statute of Repose
Texas imposes a 10-year statute of repose for construction defect claims (Tex. Civ. Prac. & Rem. Code § 16.009). Foundation movement in Texas expansive-clay soils can take years to develop. Buyers should understand this outer time limit on construction defect claims.
Non-Standard Purchase Agreement
Perry Homes uses its own purchase agreement rather than the standard TREC residential contract. This means the contract terms may differ significantly from what buyers expect based on standard Texas real estate transactions. Key differences may include warranty terms, dispute resolution, and deposit forfeiture provisions.
Texas Legal History
Selected cases and investigations involving Perry Homes in Texas.
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
- Know the RCLA process before you close. Texas law requires 60 days' written notice to the builder before filing suit for construction defects. The builder has the right to inspect and offer repairs. Understand this process in advance so you can act promptly if defects emerge.
- Review the arbitration clause carefully. Perry Homes contracts include mandatory arbitration provisions. The Texas Supreme Court addressed Perry Homes' arbitration practices in Perry Homes v. Cull (2008). Understand that signing means waiving your right to a jury trial.
- Compare preferred lender offers with independent lenders. Perry Homes may offer incentives tied to preferred lender relationships. Get quotes from at least two independent lenders and compare total loan costs before deciding.
- Hire an independent home inspector. Texas expansive-clay soils can contribute to foundation issues over time. An independent inspector can identify concerns before closing, particularly at pre-drywall and pre-closing stages.
- Have a Texas real estate attorney review the contract. Perry Homes uses its own purchase agreement, not the standard TREC form. An attorney can evaluate warranty limitations, deposit forfeiture terms, and dispute-resolution clauses under Texas law.