Enforceability Status
Express warranty exclusion clauses in Texas new construction contracts are generally enforceable. Texas follows the Uniform Commercial Code (Tex. Bus. & Com. Code Ch. 2) for goods and allows parties to limit warranty obligations by agreement, provided the limitation is not unconscionable. The Texas Residential Construction Liability Act (RCLA) governs construction defect claims but does not override contractual warranty exclusions for items outside its scope.
Legal Analysis
Texas law permits builders to define the scope and duration of express warranties in residential construction contracts. Under Tex. Bus. & Com. Code section 2.316, sellers may exclude or modify implied warranties if the exclusion is conspicuous and uses specific language. For new home sales, builders commonly limit warranties to structural components for ten years, systems for two years, and workmanship for one year, while excluding cosmetic issues, landscaping, and homeowner-caused damage.
The Texas Residential Construction Liability Act (Tex. Prop. Code Ch. 27) provides a framework for construction defect claims but does not create standalone warranty rights. The RCLA requires homeowners to provide written notice and an opportunity to repair before filing suit. Warranty exclusions that do not conflict with the RCLA notice-and-cure process are generally upheld.
Texas courts have recognized that warranty limitations in builder contracts are enforceable unless they are unconscionable or violate public policy. In Centex Homes v. Buecher (Tex. App. 2009), the court enforced a builder's limited warranty terms, noting that buyers who sign contracts containing clear warranty limitations are bound by those terms absent fraud or duress.
Buyers should be aware that Texas does not have a statutory implied warranty of habitability for new construction that overrides express warranty limitations. The Texas Supreme Court has recognized an implied warranty of good workmanship in Melody Home Manufacturing Co. v. Barnes (1987), but builders may contractually limit the scope and remedies of this warranty through express terms.
Relevant Texas Law
Establishes notice-and-cure procedures for residential construction defect claims. Requires homeowners to provide 60 days' written notice before filing suit.
Adopts UCC provisions governing express and implied warranties, including rules for exclusion and modification of warranties in sales transactions.
Prohibits false, misleading, or deceptive acts in trade or commerce, including breach of express or implied warranty. Provides treble damages in some cases.
Related Cases
The Texas Supreme Court recognized an implied warranty of good workmanship and habitability in new home construction, which builders may limit through express warranty terms.
The court enforced a builder's limited warranty provisions, holding that clear contractual warranty limitations are binding when agreed to by the buyer.
Builders in Texas Using This Clause
What Texas Buyers Should Know
- Review All Warranty Exclusion Categories Texas builder warranties typically exclude cosmetic defects reported after a short window, landscaping, drainage issues caused by homeowner modifications, and damage from weather events. Identify every category the builder excludes before signing.
- Understand the RCLA Notice Requirement Before pursuing any warranty-related claim, Texas law requires you to send the builder a written notice describing the defect and allow 60 days for inspection and a repair offer. Failure to comply with RCLA procedures can limit your legal remedies.
- Document Conditions at Closing Conduct a thorough pre-closing inspection and document all items in writing. Warranty exclusion clauses often disclaim responsibility for conditions that were visible or could have been discovered at closing.
- Check Whether Implied Warranty Rights Are Waived Texas recognizes an implied warranty of good workmanship, but builder contracts often attempt to replace it with a limited express warranty. Review whether the contract contains language disclaiming implied warranties and understand how that affects your rights.