Texas HB 2024 (Civ. Prac. & Rem. Code 16.009): Six-Year Limit With Written Warranty

Quick Answer

Texas HB 2024 (2023) amended Civil Practice and Remedies Code § 16.009, the statute that sets an outside deadline for suing a builder or repairer after construction is substantially complete. For a "residence" as the statute defines it, the deadline stays at 10 years, but it drops to six years if the person sued is a contractor who gave a written warranty that meets minimum coverage periods.

The bill took effect in 2023 and applies only to certain causes of action (see the effective-date notes below). It is a construction-claim deadline, not an HOA statute. For an association, the practical point is timing: a defect claim against a builder may have a shorter clock than many boards assume. Whether it reaches a particular association claim is a question for counsel.

At a Glance

What the Law Says

Section 16.009 has long required a claimant to sue a person who constructs or repairs an improvement to real property within 10 years after "substantial completion of the improvement." HB 2024 amended subsections (a) and (c) and added (a-2), (a-3) and (a-4).

New subsection (a-2) covers "any claim arising out of 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." The general rule for those claims is still 10 years after substantial completion. Then the bill adds: "If the person being sued is a contractor who has provided a written warranty for the residence that complies with Subsection (a-3), the claimant must bring the suit not later than six years after the substantial completion of the improvement."

Subsection (a-3) says the written warranty "must provide a minimum period of":

• one year for workmanship and materials;
• two years for plumbing, electrical, heating, and air-conditioning delivery systems; and
• six years for major structural components.

Subsection (a-4) supplies two definitions for (a-2). "Contractor" has the meaning in Property Code § 27.001. "Residence" means "the real property and improvements for a detached one-family or two-family dwelling or a townhouse not more than three stories above grade plane in height with a separate means of egress or an accessory structure not more than three stories above grade plane in height."

Subsection (c) was changed so that a written claim presented to the person who did the work during the limitations period extends the period by one year for claims under (a-1) or (a-2). The two-year extension remains for claims under subsection (a).

Other parts of § 16.009 were not changed by HB 2024 and still apply. Under (d), if damage, injury or death occurs during the last year of the period, the claimant may sue within two years after the cause of action accrues. Under (e), the section does not bar an action on a written warranty or other contract that "expressly provides for a longer effective period," an action against a person in actual possession or control of the property when the damage occurs, or an action based on "wilful misconduct or fraudulent concealment."

Which claims the bill covers

Section 2 of the bill says the amended § 16.009 applies to a cause of action arising out of design, construction or repair of an improvement to real property "that commences on or after the effective date," but not one that commences after that date "under a contract entered into before that date." Causes of action that commenced earlier, or that arise under older contracts, stay under the prior law.

What This Means in Practice

For boards

Our reading: the six-year clock matters most to an association weighing a claim about original construction. The text sets the period by reference to the person being sued, the type of property, and whether a compliant written warranty exists. A board cannot tell from the statute alone which period applies; it needs the builder's warranty and the substantial-completion date.

Our reading: the clock is measured from "substantial completion of the improvement," not from discovery of the problem. The statute does not define substantial completion in the text we read, so when it occurred for a given building or phase is a fact question to raise with counsel.

The one-year extension in (c) depends on presenting a "written claim for damages, contribution, or indemnity" to the person who did the work during the limitations period. The text we read does not say what form that claim must take.

Condominiums and townhomes: an open question

The § 16.009(a-4) definition of "residence" names detached one-family and two-family dwellings and townhomes. It does not mention condominium units or common elements. Property Code § 27.001(6), the definition used in the residential construction liability chapter, is broader and expressly includes "a unit and the common elements in a multiunit residential structure in which the individual units are sold to the owners under a condominium or cooperative system."

Our reading: because (a-4) has its own, narrower definition, it is not clear from the text that the six-year warranty rule reaches a condominium building. HB 2024 does not say. A condominium association should not assume either answer. This is an open question for counsel.

What the law does not say

• It does not say associations have standing to sue for construction defects, or on whose behalf an association may sue. That is governed by other law and the governing documents, which we did not review for this page.
• It does not shorten the default 10-year period for residences without a compliant warranty.
• It does not say a warranty that is shorter than the (a-3) minimums triggers the six-year period. By its terms, the shorter period depends on a warranty that "complies with Subsection (a-3)."
• It contains no remedy or penalty provision.

Timeline

Related Texas Law

• Property Code § 27.001, the definitions section referenced by the bill (not an HOA statute).
• Texas HB 2022 (2023), residential construction defect definition, a separate 2023 bill that also touched residential construction claims.
• Texas Uniform Condominium Act, Chapter 82, relevant to the condominium question above.
• Texas HOA laws complete guide.

Board Checklist

• Find the substantial-completion date for each building or phase, and calendar both the six-year and 10-year marks from it.
• Locate any written warranty from the builder and compare its coverage periods to the minimums in § 16.009(a-3).
• Ask counsel whether the association's property counts as a "residence" under (a-4), especially for condominium buildings.
• If a claim may be brought, ask counsel about the written-claim extension in (c) and whether it has been used.
• Keep turnover documents, warranties, inspection reports and correspondence with the builder together in the association's records.

Frequently Asked Questions

Does HB 2024 shorten every construction defect deadline to six years?

No. For claims about a residence, the period remains 10 years after substantial completion unless the person sued is a contractor who gave a written warranty that meets the minimums in § 16.009(a-3). Then it is six years.

What must the written warranty cover?

At minimum, one year for workmanship and materials, two years for plumbing, electrical, heating and air-conditioning delivery systems, and six years for major structural components.

Does the bill apply to condominium associations?

The text does not say. The definition of "residence" in § 16.009(a-4) lists detached one-family and two-family dwellings and townhomes, and does not mention condominium units. Our reading is that the question is open; ask counsel.

Can the six-year period be extended?

Under § 16.009(c), a written claim presented to the person who did the work during the period extends it by one year for a claim under (a-2).

Does the bill apply to buildings completed before 2023?

The bill ties its application to when the cause of action commences and to the date of the contract, not the completion date. It applies to causes of action that commence on or after its effective date, except those arising under a contract entered into before that date. Counsel should apply that to specific facts.

Where This Comes From

We read the enrolled text of H.B. 2024 (88th Legislature) on capitol.texas.gov, including the vote certifications, along with the current text and history note of Civil Practice and Remedies Code § 16.009 and Property Code § 27.001 on texas.public.law, which reproduce the official statutes. Official bill page: enrolled H.B. 2024 on capitol.texas.gov. We did not read the governor's approval or any court decision applying the amendment.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Texas attorney before acting.