Texas Property Code Chapter 27 — the Residential Construction Liability Act, or RCLA — is the statute behind the one-line notice printed on TREC's New Home Contracts (24-20 and 23-20): before a homeowner can sue a builder or contractor over a construction defect, they generally have to send a specific written notice first. This page describes what the statute says. It is not legal advice. RCLA disputes involve real deadlines and real money — consult a Texas construction-law attorney before sending a notice, responding to one, or deciding whether to file suit.
RCLA doesn't create a lawsuit — it modifies one
Chapter 27 "does not create a cause of action or derivative liability or extend a limitations period" (§ 27.005). It's not its own claim. It's a procedural and damages-limiting layer that sits on top of whatever claim a homeowner already has — breach of contract, breach of an implied warranty, a Deceptive Trade Practices Act claim, negligence. If that underlying claim "arises from a construction defect" against a "contractor," RCLA's notice-and-cure process applies to it, and Chapter 27 prevails over any conflicting law, including the DTPA (§ 27.002(a)-(b)).
What counts as a "construction defect" and a "contractor"
The statute defines both terms broadly. A construction defect is "a deficiency in the design, construction, or repair of a new residence, of an alteration of or repair or addition to an existing residence, or of an appurtenance to a residence, on which a person has a complaint against a contractor" (§ 27.001(3)). A contractor isn't limited to the builder who signed the contract — it also "includes an owner, officer, director, shareholder, partner, or employee of the contractor," plus certain risk-retention-group insurers who cover a contractor's repair liability (§ 27.001(4)). "Residence" covers detached one- and two-family homes, townhouses up to three stories, accessory structures up to three stories, duplexes/triplexes/quadruplexes, and condo or co-op units (§ 27.001(6), (9)).
RCLA applies to any action for damages arising from a construction defect — except personal-injury, survival, wrongful-death, or damaged-goods claims — and it reaches subsequent purchasers, not just the original buyer (§ 27.002(a)). It does not apply to a violation of § 27.01, Business & Commerce Code (a different real-estate-fraud statute that happens to share the number "27" — don't confuse it with this Property Code chapter), a contractor's wrongful abandonment of a project before completion, or a Chapter 162 construction-trust-fund violation (§ 27.002(d)).
The 60-day notice: what it has to say and how it has to be sent
Before the 60th day preceding the date a homeowner initiates a lawsuit or arbitration, they "shall give written notice by certified mail, return receipt requested, to the contractor, at the contractor's last known address, specifying in reasonable detail the construction defects that are the subject of the complaint" (§ 27.004(a)). The homeowner also has to hand over any evidence showing the nature and cause of the defect and what repairs are needed — expert reports, photos, video or audio recordings — if that evidence would be discoverable under Rule 192 of the Texas Rules of Civil Procedure.
Two narrow exceptions let a homeowner skip the notice: if giving it would be impractical because the statute of limitations is about to run, or if the complaint is raised as a counterclaim rather than an original suit. Even then, the pleading itself has to describe the defects in reasonable detail, and the inspection/offer clock just shifts to run off the date of service instead of the date of notice (§ 27.004(c)).
The contractor's right to inspect — and to offer repair first
Once the contractor receives the notice, the clock runs the other way for a while. During the 35 days after receiving notice, on written request, the contractor gets a reasonable opportunity to inspect the property — up to three separate inspections — to determine what caused the defect and what it would take to fix it (§ 27.004(a)).
Within 60 days of receiving the notice, the contractor may (not must) send a written settlement offer, also by certified mail. The offer can be to repair the defect — fully or partially, at the contractor's expense or a reduced rate — and it has to describe the repairs and a completion timeline in reasonable detail. If the homeowner accepts, the repairs are due within 60 days of that acceptance (§ 27.004(b)).
If the homeowner thinks the offer is unreasonable, they have until the 25th day after receiving it to tell the contractor, in writing, exactly why. The contractor then gets 10 more days to send a supplemental offer (§ 27.004(b)(1)-(2)).
What happens if the homeowner skips the notice and sues anyway
The consequence is abatement, not dismissal. If a claimant sues without giving the required notice, without giving the contractor a reasonable inspection opportunity, or without following the offer procedures, "the court or arbitration tribunal shall abate an action governed by this chapter" (§ 27.004(d)) — meaning the case is paused, not thrown out, to let the notice-and-cure process run before the lawsuit continues. This abatement is largely self-executing: it kicks in automatically starting the 11th day after the contractor files a verified motion to abate, unless the homeowner controverts it with their own affidavit before that 11th day passes.
There's one exception that overrides the whole notice-and-offer sequence: if a defect creates an imminent threat to occupant health or safety, the contractor has to take reasonable steps to cure it as soon as practicable, regardless of where the parties are in the 60-day dance. If the contractor doesn't act in a reasonable time, the owner can have the defect fixed and recover the reasonable repair cost plus attorney's fees and costs (§ 27.004(m)).
Where the disclosure notice on TREC's forms comes from
Chapter 27 also requires the notice printed on covered written construction contracts — the same boldface paragraph that appears on TREC's New Home Contracts (24-20 and 23-20), referencing Chapter 27 and Section 27.004 and the 60-day certified-mail requirement (§ 27.007(a)). If a covered contract leaves that notice out, the homeowner can recover a $500 civil penalty on top of any other remedy (§ 27.007(b)). Any attempt to waive Chapter 27's protections in a contract is void (§ 27.009).