Before a Texas homeowner can sue a builder or contractor over a construction defect, state law requires a specific sequence of steps: written notice, an opportunity to inspect, and a chance to make a repair offer. This process, governed by Chapter 27 of the Texas Property Code and known as the Residential Construction Liability Act, has existed since 1989. For fourteen years, it remained largely unchanged.

That changed on September 1, 2023, when House Bill 2022 took effect, rewriting significant portions of the RCLA’s notice requirements, inspection procedures, and liability standards. For homeowners dealing with a defect and contractors responding to a claim, understanding what actually changed matters, because much of the guidance still circulating online reflects the pre-2023 version of the law rather than the version currently in effect.

What the RCLA Covers and What It Does Not

The RCLA applies to any action seeking to recover damages or other relief arising from a construction defect, but it explicitly does not apply to claims for personal injury, survival, wrongful death, or damage to goods. It covers residential property broadly, including single family homes, duplexes, triplexes, quadruplexes, and condominium units. House Bill 2022 added a new category to that list, formally defining a townhouse as a single family dwelling unit constructed in a group of three or more attached units, each extending from foundation to roof with a yard or public way on at least two sides, and bringing townhouses squarely within the statute’s coverage.

House Bill 2022 also revised several of the statute’s core definitions in ways that affect how a claim is evaluated. The definition of appurtenance was broadened to cover any garage, outbuilding, retaining wall, or other structure or recreational facility built by a contractor in connection with the construction or alteration of a residence, regardless of whether it is physically attached to the dwelling. The definitions of construction defect, contractor, economic damages, residence, and structural failure were also revised, and the law eliminated outdated references to the now defunct Texas Residential Construction Commission, along with the prior definition of a third party inspector, cleaning up language that had been left over from an agency that no longer exists.

Understanding this coverage matters at the outset, because the RCLA process described below is not optional for a covered claim. It is a mandatory prerequisite that has to be satisfied before a homeowner can proceed to litigation against a contractor.

The 60-Day Notice Letter: What HB 2022 Requires Now

Before filing suit, a homeowner must send the contractor written notice, by certified mail with return receipt requested, at least 60 days before the lawsuit is filed. That notice must reasonably describe the construction defect and include any evidence of the defect the homeowner has in their possession at the time. This notice requirement is the trigger for the entire RCLA process, and it starts the clock running on every deadline that follows.

The evidence disclosure component of the notice is particularly important under the current version of the statute, and it connects directly to a later provision governing whether a contractor’s settlement offer will be treated as timely. If a homeowner withholds evidence that was available and in their possession at the time the original notice was sent, and that evidence later surfaces during litigation, it can affect how a contractor’s response to the claim is evaluated after the fact. Sending a notice that is thorough and complete from the outset, rather than treating it as a formality to satisfy before getting to the real dispute, protects a homeowner’s position throughout the rest of the process.

Up to Three Inspections in a 35-Day Window

Once a contractor receives the RCLA notice, the statute gives the contractor a window to inspect the property and assess the alleged defect. Before House Bill 2022, the law simply stated that a contractor was entitled to a reasonable opportunity to inspect within 35 days, without defining what reasonable actually meant in practice, which left the door open to disputes over whether a single walkthrough satisfied the requirement or whether a contractor was entitled to return multiple times.

House Bill 2022 resolved that ambiguity directly. Under the current statute, a contractor may, upon request, inspect the property up to three times within the 35 day window that begins after the contractor receives the notice. This gives contractors meaningfully more access to document and evaluate a claimed defect than the prior version of the law provided, and it gives homeowners a clear, predictable framework for what to expect rather than an open-ended obligation to accommodate repeat visits indefinitely.

The Narrowed Warranty of Habitability Standard

One of the most substantively significant changes House Bill 2022 made involves the standard for pursuing a breach of the implied warranty of habitability, a claim that a home is not reasonably fit for its intended use as a residence. Before the amendments, this claim was available in a broader range of circumstances. House Bill 2022 added two specific requirements a homeowner must now satisfy to maintain a warranty of habitability claim.

First, the construction defect must have been latent, meaning it was concealed or not reasonably apparent, at the time the residence was completed or title was conveyed to the original purchaser. A defect that was visible and apparent at the time of completion generally will not support this particular claim, even if it later causes problems. Second, the defect must have actually rendered the residence unsuitable for its intended use as a home, a materially higher bar than simply showing that a defect exists or that it diminished the property’s value. Together, these two requirements meaningfully narrow the pool of defects that can support a habitability claim, excluding both defects that were visible from the start and defects that, while real and worth addressing, fall short of making the home genuinely unlivable.

House Bill 2022 similarly tightened the standard for general contractor liability under the statute. A contractor is now liable only to the extent a defective condition approximately causes actual physical damage to the residence, an actual failure or lack of capability of a building component to perform its intended function, or a verifiable danger to the safety of the residence’s occupants. The statute also now expressly states that a contractor is not liable for damages caused by a claimant’s failure to mitigate damages, by another party’s failure to timely notify the contractor of the defect, or for normal cracking or shrinkage cracking that does not rise to the level of an actual defect.

When a Contractor’s Late Settlement Offer Is Still Considered Timely

The RCLA has always encouraged contractors to resolve claims through a written settlement or repair offer rather than litigation, and House Bill 2022 extended the deadline for making that offer. Under the prior law, a contractor had 45 days from receiving the homeowner’s notice to make a written offer of settlement. House Bill 2022 extended that window to 60 days, giving contractors more time to evaluate the claim, complete their inspections, and formulate a response before the deadline to make an offer expires.

House Bill 2022 also added a provision addressing what happens when a contractor’s offer arrives after that 60 day deadline. Under the current statute, a late settlement offer may still be treated as timely under certain circumstances, specifically if the claimant failed to provide evidence in the original notice that was available and in the claimant’s possession at that time, if the claimant later amended the claim to add a newly alleged defect, or if the delay resulted from events beyond the contractor’s control. This provision is directly connected to the notice requirements discussed earlier. A homeowner who does not fully disclose available evidence in the initial notice, or who adds new claimed defects later in the process, can end up giving the contractor a legitimate basis to argue that a later offer should still count as timely, which can affect a homeowner’s ability to recover attorney’s fees and other remedies tied to a contractor’s failure to make a timely, reasonable offer.

What Happens If You Skip the RCLA Process

The RCLA notice and inspection process is not a courtesy step homeowners are free to bypass if they would rather move straight to filing a lawsuit. Texas courts have consistently treated compliance with the RCLA’s notice requirement as a mandatory prerequisite to litigation for claims the statute covers. A homeowner who files suit against a contractor without first sending the required 60 day notice, or without giving the contractor the inspection and settlement offer opportunities the statute provides, generally faces the real risk that the lawsuit will be abated, meaning paused by the court, until the homeowner completes the required process.

This is not simply a procedural inconvenience. An abatement can delay a case for months, and it puts a homeowner in the position of having to go back and follow a process they were required to complete before litigation began in the first place. Because the RCLA also affects what remedies and fee recovery are available depending on how the notice, inspection, and offer process actually unfolded, skipping or rushing through these steps can have consequences that extend well beyond a simple delay, potentially affecting the strength of the underlying claim itself.

Frequently Asked Questions About the Texas RCLA and House Bill 2022

What is the Texas Residential Construction Liability Act?

The RCLA, found in Chapter 27 of the Texas Property Code, is a state law that governs how residential construction defect disputes must be handled before a homeowner can file a lawsuit against a contractor. It requires written notice, gives the contractor an opportunity to inspect the property, and allows the contractor to make a settlement or repair offer before litigation proceeds.

How long before I can sue does the RCLA notice have to go out?

A homeowner must send the required written notice, by certified mail with return receipt requested, at least 60 days before filing suit against the contractor. This notice must reasonably describe the alleged construction defect and include any evidence of the defect the homeowner has at that time.

How many times can a contractor inspect my home?

Under House Bill 2022, a contractor may, upon request, inspect the property up to three times within the 35 day window that begins after the contractor receives the RCLA notice. This clarified a previously ambiguous standard that only required a reasonable opportunity to inspect without specifying a number of visits.

What did House Bill 2022 change?

House Bill 2022, effective September 1, 2023, revised several key definitions under the RCLA, extended the contractor’s settlement offer deadline from 45 to 60 days, clarified the inspection process to allow up to three inspections within 35 days, narrowed the standard for both general contractor liability and warranty of habitability claims, and added a provision addressing when a late settlement offer can still be treated as timely.

What happens if I do not follow the RCLA process?

If a homeowner files a lawsuit covered by the RCLA without first completing the required notice, inspection, and settlement offer process, the case generally faces a real risk of being abated by the court until the homeowner complies, which can significantly delay the litigation and may affect what remedies are ultimately available.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. The RCLA notice and inspection process involves specific deadlines and procedural requirements, and how they apply depends on the facts of your situation and when your claim accrued. If you are a homeowner or contractor navigating a construction defect dispute, an attorney can evaluate the specifics of your case.

Whether you are a homeowner dealing with a construction defect or a contractor responding to an RCLA notice, Herrera PLLC can help you navigate the process correctly from the start. Learn more about our civil litigation practice, our work on construction defect claims, and contractor disputes, or call 832-891-3210 to speak with our office directly.

Jonathan Herrera, J.D. is a Houston based attorney and the founder of Herrera PLLC, representing homeowners, contractors, and businesses in construction litigation and civil disputes across Texas. Before practicing law, he spent over a decade as a licensed insurance adjuster managing high exposure casualty and property claims, including construction related losses, for carriers and third party administrators, giving him firsthand insight into how construction defect claims are evaluated from both the claims handling and litigation sides. He is a member of the Texas Trial Lawyers Association and the American Association for Justice.