Texas Residential Construction Liability Act (RCLA) - Tex. Prop. Code Ch. 27
Texas construction defect law: When your Texas contractor delivers defective work, the Texas Residential Construction Liability Act (RCLA) under Tex. Prop. Code Chapter 27 controls your claim. The RCLA requires homeowners to provide written notice to contractors at least 60 days before filing a lawsuit and establishes a detailed pre-suit process.
This guide covers RCLA notice requirements, TDLR contractor licensing, the inspection and offer process, and how to draft demand letters that comply with Texas law while maximizing your recovery for construction defects.
I handle Texas construction defect demand letters personally. Compliance with the RCLA is mandatory - failing to follow the proper procedures can limit your damages or result in dismissal of your lawsuit.
The RCLA (Tex. Prop. Code Sections 27.001-27.007) is the exclusive remedy for residential construction defect claims in Texas. It establishes mandatory pre-suit procedures designed to encourage resolution without litigation.
The RCLA applies to construction defects in residential properties, including:
Certain claims fall outside the RCLA:
| Claim Type | Deadline | Statutory Reference |
|---|---|---|
| Breach of Contract | 4 years from breach | Tex. Civ. Prac. & Rem. Code Sec. 16.004 |
| Construction Defect (tort) | 2 years from discovery | Tex. Civ. Prac. & Rem. Code Sec. 16.003 |
| Statute of Repose | 10 years from substantial completion | Tex. Civ. Prac. & Rem. Code Sec. 16.008 |
Texas does not require statewide general contractor licensing. However, the Texas Department of Licensing and Regulation (TDLR) licenses specific trades:
The RCLA establishes a detailed pre-suit process with specific deadlines for both homeowners and contractors. Following this process correctly is essential.
Your RCLA notice must include:
After receiving your notice, the contractor has the right to:
If the contractor makes a settlement or repair offer, you must evaluate it carefully:
| If the Offer Is... | Your Options | Consequences |
|---|---|---|
| Reasonable and accepted | Accept in writing; contractor performs repair | Claim resolved; no lawsuit needed |
| Unreasonable and rejected | Reject in writing with reasons; may file lawsuit | Full damages available at trial |
| Reasonable but rejected | Reject in writing; may file lawsuit | Damages may be limited to offer amount (Sec. 27.004(g)) |
Building a strong construction defect case requires comprehensive documentation of the defects, their cause, and your damages.
The original contract, any change orders, specifications, plans, and scope of work documents. These establish what the contractor agreed to provide.
All payments made to the contractor including checks, credit card statements, invoices, and receipts. Document the total amount paid.
Detailed photos and videos of each defect, taken from multiple angles with date stamps. Document progression of damage over time.
All emails, texts, letters, and notes from calls with the contractor. Include complaints made to the contractor and their responses.
Reports from independent contractors, engineers, or construction experts documenting defects, code violations, and cost to repair.
Copies of permits pulled (or not pulled), inspection reports, and any code violations or failed inspections.
| Defect Category | Examples |
|---|---|
| Structural Defects | Foundation cracks, settling, load-bearing wall issues, roof truss failures, framing defects |
| Water Intrusion | Roof leaks, window and door leaks, improper flashing, failed waterproofing, drainage problems |
| Mechanical Defects | HVAC failures, plumbing leaks, electrical problems, inadequate systems for home size |
| Finishing Defects | Poor paint, cracked drywall, uneven flooring, cabinet installation, tile work |
| Code Violations | Unpermitted work, failure to meet building codes, safety violations, incorrect materials |
For significant defects, obtain written reports from qualified experts:
Texas law provides several categories of damages for construction defects. The RCLA sets specific limits on recovery, particularly regarding attorney fees and when you reject reasonable offers.
The reasonable cost to repair the construction defects to meet contract specifications and applicable building codes.
If defects cannot be fully repaired, the reduction in your property's market value caused by the remaining defects.
Reasonable and necessary attorney fees if you substantially prevail in an RCLA action. (Tex. Prop. Code Sec. 27.004(h))
Reasonable costs for temporary housing if defects make your home uninhabitable during repairs.
If defects prevented you from renting the property, you may recover lost rental income during the repair period.
In limited circumstances, mental anguish damages may be available for severe defects affecting habitability.
Certain claims are not governed by the RCLA and may provide additional or different remedies:
I personally draft RCLA notices and construction defect demand letters for Texas homeowners. Proper compliance with the RCLA is essential - I ensure your notice meets all statutory requirements while building the strongest possible case for maximum recovery.
I ensure your notice meets all Tex. Prop. Code Ch. 27 requirements, properly describes each defect, and preserves your right to full recovery.
I help you organize evidence, obtain expert reports, and build a complete record of defects and damages.
I analyze contractor settlement offers to determine whether they are reasonable and advise on acceptance or rejection.
I negotiate with contractors and their insurance carriers to maximize your recovery without litigation when possible.
I handle Texas RCLA notices and construction defect demand letters personally. Contact me for a case evaluation.
Email: owner@terms.lawThe RCLA (Tex. Prop. Code Chapter 27) is Texas law that governs construction defect claims against residential contractors. It requires homeowners to provide written notice to contractors at least 60 days before filing a lawsuit, giving contractors an opportunity to inspect and offer to repair the defects. This process is mandatory for residential construction defect claims.
Yes. Under the RCLA (Tex. Prop. Code Section 27.004), you must send written notice to the contractor at least 60 days before filing a lawsuit. The notice must describe the construction defects in reasonable detail. If you file suit without proper notice, the contractor can seek abatement of the lawsuit until you complete the RCLA process.
Texas has multiple deadlines: breach of contract claims have a 4-year statute of limitations (Tex. Civ. Prac. & Rem. Code Sec. 16.004), tort claims have 2 years, and all construction defect claims are subject to a 10-year statute of repose from substantial completion (Sec. 16.008). The 10-year deadline is an absolute bar regardless of when you discover the defect.
After receiving your RCLA notice, the contractor has 35 days to request an inspection and 45 days to make a written offer to repair or settle. You must allow reasonable inspection access. If you reject a reasonable offer and later recover less at trial, your damages may be limited to the contractor's last offer amount.
Texas does not have statewide general contractor licensing. The Texas Department of Licensing and Regulation (TDLR) licenses specific trades including electricians, HVAC technicians, and certain other specialties. Plumbers are licensed by a separate board. Many cities require local contractor registration. Working with unlicensed contractors for trades requiring licenses may affect your claims.
Under the RCLA, you can recover the cost of repairs, reduction in market value if defects cannot be fully repaired, reasonable attorney fees if you substantially prevail, and in some cases mental anguish damages. Punitive damages are not available under the RCLA but may be available for separate fraud or DTPA violation claims.