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Residential Construction Liability Act<br />

(RCLA)<br />

II. Residential Construction Liability Act (RCLA) -- Texas Property Code §<br />

27.001 et seq.<br />

July 21, 1994<br />

Page 6<br />

A. Applicability §27.002<br />

1. Applies only to residential construction.<br />

2. Applies to "construction defects" -- but does not apply to<br />

actions for damages for personal injury (excluding mental<br />

anguish), survival, wrongful death or for damage to<br />

goods.<br />

3. "Construction defect": any matter concerning the design,<br />

construction or repair of a new residence, or the<br />

remodeling of an existing residence. Includes any<br />

"appurtenances" to a residence i.e., swimming pool,<br />

detached garage, etc.<br />

B. Who is a proper Defendant? "Contractors" §27.003<br />

a) Defined as: a person contracting with an owner for<br />

the construction or sale of a new residence<br />

constructed by that person or of an alteration or<br />

addition to an existing residence, repair of a new<br />

residence, or construction, sale, alteration, addition,<br />

or repair of an appurtenance to a new or existing<br />

residence.<br />

b) The definition also includes a risk retention group<br />

that insures any part of a contractor's liability for<br />

the cost of repairing residential construction defects.<br />

C. Who is a proper Plaintiff? §27.001 et seq<br />

Anyone who suffers damages from a construction defect, i.e.,<br />

anyone who seeks or acquires a contractor's services to design,<br />

build or repair a new home or to remodel or add to an existing<br />

home. A subsequent purchaser of the home is required to<br />

follow the RCLA procedures.<br />

D. Proceeding under the act -- § 27.004

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