The New TRCC: Make sure you are in compliance
Attorneys from the Decker Jones Law Firm were in Temple this past month to provide TABA members with an overview about new laws resulting from the recent legislative session in Austin. These laws will directly impact the regulatory authority of the Texas Residential Construction Commission (TRCC) and indirectly impact the local building community in terms of additional residential construction contract obligations.
Stephen Polozola, Matt Motes, and Brad Rice spent the better part of two hours going over new violations under the law, new disciplinary powers of the TRCC, and new penalty amounts at the disposal of the agency.
Definitions pertaining to the TRCC have also been honed and the law is now more specific about whom it is addressing. For example, “persons subject to discipline…” has been clarified to include the builder’s agent or the person who owns or controls the majority ownership interest. This means that in some cases, the investor, rather than the builder could be responsible for the warranty requirements of a new residence.
Further points that the legal team emphasized included:
How a builder could be accused of and fined for “misappropriation of trust funds.”
Some TRCC procedural revisions will be of particular interest to those who build homes outside a municipality where these homes will now be required to be inspected by third-party inspectors.
Prior to issuing building permits, municipalities will now be required to verify a builder is registered with the TRCC.
“All registered builders are now required to have at least five hours of continuing education every five years,” according to Stephen Polozola
Mr. Polozola went on to say that most of these changes (not all) are effective September 1, 2007, and builder’s contracts must be updated to conform to the new legislation.
Should you require further information or wish to discuss whether your business complies with these changes, please contact Mr. Polozola at 817.336.2400, spolozola@deckerjones.com, or by mail at Decker, Jones, McMackin, McClane, Hall & Bates, P.C., 801 Cherry Street, Suite 2000, Unit #46, Fort Worth, Texas 76102-6836.
Click here to view the full presentation provided by Decker Jones.
