Florida and Texas have recently signed new bills into effect. In both cases, the changes create new opportunities for homebuilders to reduce risk. Use the links below to access our summary of each new law.
Texas
On Friday, June 9, 2023, the Governor of Texas signed HB 2022 and HB 2024 into effect. Here are the highlights:
- Builders who offer warranties that meet specified standards can shorten their liability for construction defect claims from ten to six years.
- References to the TRCC and the standards it created have been removed.
- The new law also limits the guarantee of habitability claims and should prevent recoveries for simple violations of the technical code.
There are many other important changes, and we’ve outlined them for you in this summary.
HB 2024 took effect immediately after the governor signed the bills on June 9. The change that allows builders to limit their liability to six years applies if construction began and the sales contract was entered into after that date. HB 2022 will take effect on September 1, 2023.
Florida
On Friday, April 14, 2023, SB 360 was passed in the state of Florida. SB360 includes substantial changes for homebuilders, but the most important is a change in the statute of repose for latent defects from ten years to seven years. Check out our full recap of SB 360 here.
SB 360 went into effect immediately after the governor signed the bill into law on April 14. The law is also retroactive. This means that the statute of repose for latent defects for all homeowners (not just those who purchase a home after April 14) has been reduced to seven years. There is an exception for claims that would have been timely under preexisting law. These claims can be made until July 1, 2024.
Stay protected with PWSC, a PCF business
Remember, you can only get the most out of these new laws by making updates to your warranty program. PWSC Warranty Officers can help.
