Frequently Asked Questions
FAQ – State Inspection Process (formally called the State-Sponsored Inspection and Dispute Resolution Process, or SIRP)
What is the state inspection process?
During a state inspection, an independent third-party inspector looks at alleged defects that are under warranty. The state inspection process provides a homeowner and builder/remodeler a final report issued by a professional engineer, architect or certified inspector. The findings in the report carry legal weight if any future arbitration, mediation or litigation occurs. Since the report can be used in a legal action, the costs for expert witness fees should be reduced greatly if not eliminated.
The commission uses professional third-party inspectors. The independent inspector compares the alleged defect to the building and performance standards. The commission uses three types of inspectors. One type handles workmanship and materials issues. Another type handles structural issues. If there are both structural issues and unrelated workmanship and materials issues, the commission will assign an inspector who is qualified to inspect both types of alleged defects. If the third-party inspector finds a problem, the inspector will recommend a repair. Either person may appeal the inspector’s report.
If a defect is found, the law expects your builder/remodeler to make a repair offer. The offer can be based on the inspector’s report or those of the appeal panel, if the report was appealed. You can accept or reject any offer your builder/remodeler makes.
If you still can’t resolve the dispute after the required state inspection, either person can still pursue other legal remedies.
How does the state inspection process work?
The process actually begins before anyone submits an inspection request to the commission. A homeowner who believes their home has post-construction defects must submit a written notice of alleged defects to the builder or remodeler at least 30 days before the inspection process can begin. Once the homeowner has notified the builder of alleged construction defects, the homeowner must give the builder a reasonable opportunity to inspect the alleged defects.
Typically, a homeowner who is not satisfied with the builder’s response to the written notice of the alleged defects files an inspection request. However, builders can file inspection requests, too. In nearly all cases, builders and homeowners must use the inspection process before turning to other civil remedies. A homeowner is not required to use the inspection process before pursuing civil remedies if a builder was not properly registered when the parties entered the construction contract or if the commission has revoked a builder’s registration.
Once the commission receives an inspection request, commission staff determines if the request is eligible. If the request is eligible, the commission assigns a third-party independent inspector to inspect the alleged defect(s) described in the request. The commission appoints third-party inspectors on a rotating basis from a list of certified third-party inspectors. The third-party inspector gathers information from the homeowner and the builder. The inspector then conducts an inspection to evaluate each alleged construction defect to determine whether the home is in compliance with applicable building standards.
Either the homeowner or the builder can appeal to the commission for a review of the third-party inspector's findings by a panel of state inspectors. At the end of the inspection process, the builder or remodeler should submit the homeowner a written offer of settlement, pursuant to the Residential Construction Liability Act (RCLA). Then the settlement provisions of RCLA come into play. If there is no satisfactory settlement, the homeowner can then pursue other legal remedies.
Does my builder have to fix my house if a defect is confirmed?
For inspection requests filed after September 1, 2007, the statute authorizes the commission to fine any builder that repeatedly fails to make an offer of repair after a commission-appointed inspector has affirmed that there are construction defects. The commission can also fine any builder that repeatedly fails to make good on a repair offer.
Will the inspector sit down with the builder and homeowner to help settle differences?
No. The inspector is not in a position to mediate with a homeowner and builder. While the commission has no formal mediation process to offer, it does employ a team of ombudsmen. The commission’s ombudsmen work with the homeowner and builder to help achieve a resolution to a dispute.
Can my builder file an inspection request?
The inspection process is available to builders and consumers.
My builder requested an inspection. Do I have to participate?
The commission cannot make a homeowner participate in the inspection process if the builder files an inspection request. On the other hand, if there is a dispute over an alleged defect that is in its warranty period, the statute requires the parties involved to proceed through the inspection process before accessing arbitration or the court system. Therefore, the penalty for a homeowner who refuses to participate in the process is that according to the law a homeowner cannot pursue other legal action against the builder arising from alleged defects if the homeowner does not first go through the inspection process.
If my builder makes a repair, how do I know they did it correctly?
When a builder completes a repair as a result of the inspection process, the builder must rehire the same inspector who initially inspected the alleged defect to inspect the repair.
Can the builder provide a monetary offer instead of a repair offer?
Yes, although the builder is not required to do so.
Can I pick the subcontractor that’s going to fix my house?
You are not obligated to accept a builder’s repair offer. If you refuse and are doing so because you don’t wish to use a particular subcontractor, let the commission and builder know. To achieve a resolution, the builder may offer to let you choose your subcontractor, choose from a list of potential subcontractors or allow you to present a list from which the builder can choose.
What will it cost a homeowner to file an inspection request?
Statute requires that the party filing an inspection request must pay a fee associated with the third party inspection. The fee for a homeowner to start the inspection process is $250. The commission reimburses the homeowner, however, if the third-party inspector's findings confirm even a single defect. The commission may also reduce or waive fees for those who show financial need. If the inspector confirms a defect, the builder/remodeler is responsible for the actual inspection fee.
If a builder/remodeler requests the inspection, the fee for a workmanship and materials inspection is $450, a structural inspection is $450, and a joint inspection of a structural issue and an unrelated workmanship and materials issue is $800.
How does a homeowner file an inspection request for a workmanship and materials or a structural defect-related issue?
Fill out the Inspection Request form and mail the form to: P.O. Box 13144; Austin, Texas 78711-3144 or by fax at (512) 463-9507.
What is the deadline for a homeowner or builder to submit an inspection request?
You must submit the request on or before: the second anniversary of the date the claimed construction defect was discovered, but not later than the 90th day after the date the applicable warranty period expires; and not later than the tenth anniversary of the initial title transfer from the builder to the owner of the home. If there is no title transfer, you must submit the request by the tenth anniversary of the date on which the contract for construction of an improvement was entered into.
Does the homeowner have to let the builder inspect the alleged construction defects before making an inspection request?
The homeowner must notify the builder in writing of each alleged construction defect at least 30 days before submitting an inspection request to the commission. The homeowner also must provide the builder a reasonable opportunity to inspect the alleged defect.
What information must the request include?
The request must provide a fairly detailed description of each alleged construction defect. The request must include the following information (if known or available): the amount of known out-of pocket expenses and engineering or consulting fees the homeowner incurred in connection with each alleged construction defect; if there is one, a copy of the contract between the homeowner and the builder; evidence of the cause and nature of each alleged defect including the nature and extent of repairs necessary to remedy the defect (for example, expert reports, photographs and videotapes); the signed contract and written warranty (if one was provided); proof of 30-days notice provided to the builder; and the name of anyone who inspected the home in connection with the alleged defects on behalf of the party submitting the request.
A requestor does not have to have this information to submit a request to the commission. Required inspection fees offset the cost of the third-party inspector and must be submitted with the request.
If a homeowner goes through the process, can the homeowner still take legal action against a builder?
Yes. At the end of the inspection process, the third-party inspector issues a report that identifies if there is a construction defect that the builder should address. If the homeowner is not satisfied, he or she can pursue arbitration or litigation — depending upon whether the homeowner's contract with the builder contains a binding arbitration clause. The inspector's report creates a rebuttable presumption and can be part of the record in any subsequent legal action. Basically, a rebuttable presumption means that the inspector’s findings carry a lot of weight if future legal action is necessary.
If a residential construction dispute results in an arbitration award and that award is filed in a court of competent jurisdiction, the filer must file a summary of the award with the commission no later than 30 days after the award is filed as a judgment.
I don’t agree with what the inspector’s report says. Can I appeal?
Yes, you can file an appeal. In fact, either party may appeal the inspector’s findings or recommendations on or before the 15th day after receiving the inspector’s report. A three-member panel of state inspectors (commission employees) considers the appeals. The appeal panel reviews the third-party inspector’s recommendation and may either approve, reject, modify or remand the inspection to the third-party inspector for further action. The panel also reviews the inspection process to make sure it complies with the law.
What can I appeal?
Essentially, you can appeal the findings and conclusions of the inspector, the standard applied or the repair recommendation on or before the 15th day after receiving the inspector’s report. The appeal panel cannot review any new material or information that was not made a part of the record. A party to an inspection request must provide all of its supporting documentation and any background, general or additional information to the third-party inspector for consideration when the inspector writes the report. The appeal panel reviews the inspector’s report and the record of material he considered or had available to consider when he wrote the report to determine if the inspector’s findings and recommendations are supported by the evidence.
I think my builder is using shoddy materials during construction. Can I request a state inspection immediately?
The commission’s inspection process only is available when what is at issue is an alleged post-construction defect. However, a homeowner should address any concerns with the builder as soon as they arise. Many times, your city building official can help.
After the homeowner receives the title to the house from the builder, the homeowner can submit an inspection request to the commission after providing the builder 30-days notice of the alleged construction defects and giving the builder an opportunity to respond. Commission staff will review each inspection request to determine whether the alleged construction defect is eligible. Only allegedly failing items that an inspector can view without removing wall coverings or destroying the fit and finish of a home are eligible. However, if one of the parties is willing to pay for the removal and replacement of wall coverings, or other destructive testing, the inspector can use the test results.
Does the inspection process include personal injury claims?
No, the inspection process applies only to post-construction defects, not to personal injury claims. A homeowner is free to pursue those claims through other legal venues.
Can I hire an attorney to represent me during the inspection process?
Hiring an attorney is optional. Anyone involved in the inspection process may seek legal representation.
FAQ - Builder/Remodeler Registration and Renewal
Are residential builders and remodelers required to register with the commission?
Yes, registration with the commission is required to operate legally as a residential builder or remodeler in Texas. A person must be at least 18 years of age and a citizen of the United States or a lawfully admitted alien at the time of registration in order to register. Additionally, the applicant must satisfy the commission that the applicant is honest, trustworthy and has integrity.
Who is exempt from registration?
• An individual who builds his/her own home (alone or with the assistance of the individual's employees or independent contractors) and uses that home as his/her primary residence for at least one year after the completion or substantial completion of construction of the home;
• A homeowner or a homeowner’s real estate broker, agent or property manager, interior decorator or interior designer who supervises or arranges for the construction of an improvement to a home owned by the homeowner;
• A business entity or individual who, for a fixed price, commission, fee, wage or other compensation constructs or supervises or manages the construction of an improvement solely to replace or repair a home’s component parts (including a roof);
• A person who provides construction services that do not change the square footage of the home’s living space or that do not improve the interior of an existing home at a cost of $10,000 or more;
• Any business entity or individual who has been issued a license by the state or an agency of the state to practice a trade or profession related to or affiliated with residential construction if the work being done by the entity or individual is solely for the purpose for which the license was issued (e.g. plumbers or electricians); and
• A non-profit organization where a registered builder does the work and carries the warranty obligation.
When does a builder/remodeler have to register?
You must register before beginning residential construction work on qualifying projects in Texas. Simply fill out the Builder Application form and submit the application fee.
How much does it cost to register?
As directed by the Legislature, the application fee is $500. For builder/remodelers who registered for the first time before September 1, 2007 and were in good standing on September 1, 2007, renewal is every other year. The renewal fee, is $300. For builders and remodelers who register for the first time after September 1, 2007, or who have their registration status returned to one of "good standing" after September 1, 2007, the first renewal period will be 12 months from the month of registration approval and there after, every other year. The renewal fee is $300.
I don’t charge a $10,000 fee for my interior remodel jobs, do I have to register?
The cost of the interior remodeling project itself is what determines whether you have to register the project, not your fee. If the interior remodel project costs $10,000, you have to register the job unless the project is otherwise exempted.
What can the commission do if I’m required to register, but don’t?
If the commission learns that you are building without proper registration, the commission will contact you and ask you to register. You may be required to pay a late registration fee, and you may be asked to pay a fine and sign an agreed order acknowledging that you were not properly registered. The commission will consider several factors to determine the appropriate course of action. If you are notified of the need to register, and don’t, the commission can issue a cease and desist order demanding that you stop acting as a builder. If the commission has to go to court and is successful, you may be required to pay the commission’s court costs and attorneys fees, in addition to any administrative penalty imposed. The commission can levy fines of up to $10,000 per day for every day that you continue building without proper registration.
If the commission denies my application, is my application fee refunded?
No, the commission does not refund application fees. The fee covers the cost of processing the application.
If I have been convicted of a crime, can I still register as a builder?
A criminal conviction does not necessarily mean that the commission won’t issue a registration to you. Certainly, the commission considers many factors — the nature of the crime, its severity, when it occurred and whether it relates to the duties and responsibilities of being a registered builder are a few among many — when making a determination. The commission reviews every application on a case-by-case basis. Ultimately, every applicant must satisfy the commission of the applicant’s honesty, trustworthiness, and integrity.
Are there criminal offenses that would prevent me from registering?
Again, the commission judges each application on a case-by-case basis. For complete information about criminal convictions, guilty pleas and pleas of no contest, see commission rule §303.22.
What violations might result in disciplinary actions against a home builder/remodeler?
Prohibited activities under the Act might result in sanctions against a builder’s certificate of registration and/or monetary penalties. Prohibited activities include the following:
• Fraud or deceit in obtaining a registration;
• Misappropriation or misapplication of trust funds;
• Naming false consideration in a home sale contract or construction contract;
• Discriminating on the basis of race, color, religion, sex, national origin or ancestry;
• Publishing a false or misleading advertisement;
• Failing to honor a payment issued to the commission subsequent to the commission sending a request by certified mail for payment to the last and best address for the applicant or registrant;
• Failing to pay an administrative penalty assessed by the commission;
• Failing to pay a final non-appealable judgment arising from a construction defect or other transaction between the builder or subcontractor and the homeowner;
• Failing to register a home in accordance with the Act;
• Failing to remit the home registration fee;
• Failing to reimburse a homeowner the amount ordered by the commission pursuant to Section 428.004(d) of the Act (reimbursement of fees and inspection expenses paid by the homeowner);
• Engaging in statutory or common-law fraud or misappropriation of funds, as determined by the commission after a hearing;
• A repeated failure to participate in the state-sponsored inspection and dispute resolution process;
• Failure to register as a builder as required under Chapter 416;
• Using or attempting to use a certificate of registration that has expired or that has been revoked;
• Falsely representing that the person holds a certificate of registration;
• Acting as a builder using a name other than the name or names disclosed to the commission;
• Aiding, abetting, or conspiring with a person who does not hold a certificate of registration to evade the provisions of Title 16, Property Code, or rules adopted under the title, if found by a final non-appealable court judgment;
• Allowing the person's certificate of registration to be used by another person;
• Acting as an agent, partner, or associate of a person who does not hold a certificate of registration with the intent to evade the provisions of the title or rules adopted under Title 16, Property Code;
• A failure to reasonably perform on an accepted offer to repair or a repeated failure to make an offer to repair based on:
o The recommendation of a third-party inspector; or
o The final holding of an appeal;
• A repeated failure to respond to a commission request for information;
• A failure to obtain a building permit required by a political subdivision before constructing a new home or an improvement to an existing home;
• Abandoning, without justification, any home improvement contract or new home construction project engaged in or undertaken by the person, if found to have done so by a final, non-appealable court judgment;
• A repeated failure to comply with the requirements of Subtitle F; and
• Otherwise violating Title 16, Property Code, or a commission rule adopted under Title 16.
I heard the law requires that my contracts contain certain provisions. Is that true?
Yes, there are required contract provisions in Texas. The builder/remodeler loses the ability to enforce contracts that do not include the required disclosures. Building contracts must include:
• a notice to the consumer in at least 10-point bold type or the computer equivalent that gives the telephone number of the commission and states:
STATE LAW REQUIRES THAT A PERSON HOLD A CERTIFICATE OF REGISTRATION FROM THE TEXAS RESIDENTIAL CONSTRUCTION COMMISSION IF THE PERSON CONTRACTS TO CONSTRUCT A NEW HOME OR IF THE PERSON CONTRACTS TO CONSTRUCT A MATERIAL IMPROVEMENT TO AN EXISTING HOME OR CERTAIN IMPROVEMENTS TO THE INTERIOR OF AN EXISTING HOME AND THE TOTAL COST OF THE IMPROVEMENT IS $10,000 OR MORE (INCLUDING LABOR AND MATERIALS).
YOU MAY CONTACT THE COMMISSION AT 877-651-8722 TO FIND OUT WHETHER THE BUILDER HAS A VALID CERTIFICATE OF REGISTRATION. THE COMMISSION HAS INFORMATION AVAILABLE ON THE HISTORY OF BUILDERS, INCLUDING SUSPENSIONS, REVOCATIONS, COMPLAINTS, AND RESOLUTION OF COMPLAINTS.
THIS CONTRACT IS SUBJECT TO CHAPTER 426, PROPERTY CODE. THE PROVISIONS OF THAT CHAPTER GOVERN THE PROCESS THAT MUST BE FOLLOWED IN THE EVENT A DISPUTE ARISES OUT OF AN ALLEGED CONSTRUCTION DEFECT. IF YOU HAVE A COMPLAINT CONCERNING A CONSTRUCTION DEFECT YOU MAY CONTACT THE COMMISSION AT THE TOLL-FREE TELEPHONE NUMBER TO LEARN HOW TO PROCEED UNDER THE STATE-SPONSORED INSPECTION AND DISPUTE RESOLUTION PROCESS.
• A binding arbitration notice (if the contract includes a provision requiring the parties to submit a dispute arising under the contract to binding arbitration) must be conspicuously printed or typed in a size equal to at least 10-point bold type or the computer equivalent; and
• The builder's name and certificate of registration number.
Contracts for improvements to a home subject to Section 41.007 of the Texas Property Code must include the following:
• The contractor’s Residential Construction Commission registration number if the contractor is required to register with the commission; and
• The commission’s address and phone number.
I do commercial work. Do I have to register?
Commercial construction, including apartments and condominiums, does not fall under the commission’s jurisdiction. A builder that is involved only in commercial construction does not have to register with the commission.
When does a builder/remodeler certificate expire?
Builder/Remodeler certificates expire on various schedules depending on the registration number and month and year of approval. The commission-issued builder id card will note the expiration date. The commission does not pro-rate fees for builder/remodeler registration.
How long does it take to process a builder/remodeler registration?
It typically takes 15 days. The commission processes applications in the order in which the commission receives them. There is no method available to expedite registration. However, the commission will process your application as quickly as is possible once all the information and proper payment has been received.
What information changes do I need to report to the commission?
You must notify the commission if any of the information you reported on your initial application changes. This includes financial and background information, and address and company entity changes.
How do I notify the commission of information changes to my registration?
Complete the appropriate information update form. The following forms are available for you to report changes: Registrant Information Update form; Registrant Background Update form; and Registrant Designated Agent Update form.
Submitting a change of information in another way, like in a letter or email, may not get recorded correctly. Therefore, it is important that you use the proper form.
How do I report an unregistered builder or remodeler?
You must report an unregistered builder or remodeler in writing. Send written details by e-mail or fax at (512) 463-9507. You can also send written information to P.O. Box 13509; Austin, Texas 78711-3509.
FAQ – Continuing Education FAQ
Who must take continuing education (CE)?
All builders and remodelers must take continuing education.
How many hours must I take?
Generally, you must take five hours every five years. If you register after September 1, 2007, you must take five hours your first year, then five hours every five years thereafter. If you registered with the commission before September 1, 2007, you must take five hours in the five years after September 1, 2007, then five hours every five years.
Please note that there are special circumstances for builders and remodelers that fail to timely renew. These builders and remodelers should contact the registration department to renew.
How can I find classes?
The commission posts classes for which class sponsors and builders have requested approval. Builders also may find and request approval for a class. For complete details about continuing education, please see Property Code, Title 16, Section 416.012 and relevant commission rules.
How do I get classes approved or registered with the commission?
Submit the Course Approval form accompanied by copies of course content and the instructor's credentials (experience, certifications earned, technical and educational reasons that qualifies the instructor to instruct).
How do I report class attendance?
Submit a completed Continuing Education Attendance form. The commission is developing an online reporting system, but that option is not yet available.
How do I know what classes count toward which category of CE required?
Future class approvals will categorize and publish the category for which the class qualifies.
What happens if I don’t complete my CE within the program year(s)?
The commission may suspend a builder registration until the builder/remodeler completes the requirement. A suspended builder/remodeler may not operate during the period of suspension.
A builder/remodeler who doesn’t meet the CE requirement may be ineligible for renewal. A builder or remodeler that cannot timely renew because of a shortfall of CE hours may be responsible for late fees and civil penalties.
FAQ - Home Registration
When did the home registration requirement begin?
Since January 1, 2004, the law has required all home builders and remodelers in Texas to register each qualifying home construction project with the commission.
What projects do I have to register?
The registered builder/remodeler must complete a Home Registration for: new homes; residential remodeling projects involving interior renovations exceeding $10,000; and, residential material improvements (a modification to the home that either increases or decreases the home's total square footage of living space and that also alters a perimeter wall, foundation or roof; e.g. room additions). For new homes built on the builder's lot, you must register and pay the fee no later than the 15th day of the following month in which the title transferred from builder to homeowner. If no title is transferred (e.g. home built on homeowner's lot or remodeling project), you must file the registration and pay the fee paid no later than the 15th day after: substantial completion of the project or upon the issuance of a certificate of occupancy or completion. You can register homes online.
What is the home registration fee?
The fee to register a home online is $25. If you use the paper registration form, it costs $40 per project. If your company registered more than 25 homes with the commission in the preceding calendar year, you must use the online registration system or file a waiver request in order to submit paper registration forms. You can pay the fee with cash, check, money order or credit card.
How long is the home registration process?
It can take up to 15 days, although online registration occurs overnight. The commission processes applications in the order received and there are no expedited methods of registration.
Are any residential construction projects exempt from home registration?
A home built by an individual (either alone or with the help of the individual's employees or independent contractors) and used as the primary residence for at least one year after completion or substantial completion of construction is exempt from registration. Home improvement projects that do not change the square footage of the home's living space or an interior renovation that does not exceed $10,000 during a 12-month period are also exempt. Please note that the $10,000 threshold only applies to interior renovations, not material improvement projects.
Why do I have to register my projects?
The law requires that you register qualified projects. Registration helps to identify newly constructed homes and remodel projects that are subject to the inspection process and that fall under limited statutory warranty and building and performance standards. The limited statutory warranty and building and performance standards apply to construction started after June 1, 2005.
Where can I find a Home Registration form?
It will cost you less to complete the home registration process online. If you registered more than 25 homes in the preceding calendar year, you must register your projects online unless you secure a waiver from the commission. If you wish to use the paper process, the Home Registration form is available in PDF format on the commission's Web site, by calling the commission toll free at (877) 651-TRCC, or in person at the commission office at 311 E. 14th Street, Austin, Texas.
How will the commission enforce the home registration process?
The commission has the authority to levy severe penalties against builders or remodelers who fail to register a home. Sanctions can range from disciplinary actions, such as a reprimand, a suspension or revocation of a builder or remodeler registration to administrative penalties, which can reach as high as $10,000 per violation.
Can a person building his/her own home register the home without registering as a builder?
Individuals who build their own home and plan to live there for at least one year do not have to register as a builder and do not have to register their home. That home also is exempt from the state-sponsored inspection and dispute resolution process. If you sell the home within ten years of completion, you must disclose in the contract that the home or project is not subject to the minimum statutory warranties and performance standards.
Does the commission ever refund registration fees?
The commission only refunds registration fees that involve commission errors/typos. According to policy, the commission generally does not issue refunds due to builder/remodeler registration errors. Refunds may take up to six weeks to process.
What types of home construction projects require registration?
Builders/remodelers must register all single family homes, duplexes, certain townhomes and qualifying residential remodeling projects.
What is the definition of a townhome?
A townhome is a single-family dwelling unit constructed in a group of three or more attached dwelling units in which each unit extends from foundation to roof and with open space on at least two sides not more than three stories in height with a separate means of ingress and egress.
FAQ - County Inspection Program
What is the County Inspection Program?
As of September 1, 2008, state law requires (Subtitle F; Chapter 446) that residential construction completed by builders and remodelers in unincorporated areas or in areas not subject to municipal inspections must have a minimum of three inspections conducted by a fee inspector. The builder/remodeler is responsible for hiring a fee inspector. The three required minimum inspections are a foundation inspection, a framing, mechanical and delivery systems inspection and a final inspection.
What if a builder starts work before September 1, 2008? Are some of the inspections required?
The new county inspection requirements apply to new construction or remodeling projects that begin on or after September 1, 2008. If construction starts on a home before September 1, 2008, the builder/remodeler is exempt from completing the inspections.
When does the County Inspection Program apply to new construction or a remodeling project?
The new county inspection requirements apply to new construction or remodeling projects that begin on or after September 1, 2008. Construction begins when goods, materials, or equipment has been delivered to the job site for use in the construction of a new home, or a material improvement or an interior improvement to an existing home.
Who can be a fee inspector?
A fee inspector can be an actively licensed professional engineer, a licensed architect, a professional inspector licensed by the Texas Real Estate Commission or a Texas Residential Construction Commission certified third-party inspector.
How much does it cost to register as a fee inspector or to submit an inspection report?
There is no cost to use the online County Inspection Certification System or to enter an inspection, and there is also no cost to register as a fee inspector.
What is the process for a fee inspector to document the three required inspections? What form is needed?
Fee inspectors must fill out the required Contracted Inspections information in order to submit an inspection on the commission’s online County Inspection Certification System. The Contracted Inspections information is the only information that an inspector needs to submit for an inspection. To submit a report, an inspector first must secure a builder-assigned project number; an inspector can submit reports only for projects that pass inspection. Once the information has been submitted, an emailed receipt confirmation will be sent to the builder/remodeler informing them that an inspection has been completed. Fee inspectors should not submit documentation supporting the inspection findings to the commission. A waiver must be requested in writing if a fee inspector does not have access to a computer; the commission will provide an alternative method for reporting the inspection. Submit your waiver request to dora.rivera@trcc.state.tx.us or Dora Rivera, Building Programs, P.O. Box 13509, Austin, TX 78711-3509.
What is a builder assigned project number?
The builder/remodeler provides a builder-assigned project number for each project subject to the three required inspections. This number links the inspection information to the home/project registration information. Identifying each project individually, this number is required in order to submit the online Contracted Inspections information within the online County Inspection Certification System.
Does the same fee inspector have to perform and submit all three inspections? Does an inspector have to submit a report for a project that fails an inspection?
The builder may hire a different fee inspector for each of the three required inspections. The builder/remodeler is responsible for correcting items that cause a failed inspection and for having that phase of construction re-inspected. The builder/remodeler may also hire another inspector to conduct the re-inspection. Only passed inspections are accepted by the commission.
I'm an engineer. Do I personally have to inspect a foundation before pour or may I use an assistant that I have trained, follows my protocols and reports to me?
Although the commission operates the online county inspection program, the commission's compliance focus is on the builders/remodelers for failure to obtain the required inspections. Additionally, the commission has authority over certified third-party inspectors who participate in this program. However, in the case of engineers, architects and licensed professional real estate inspectors, enforcement authority rests with the applicable licensing agency to determine if an inspector’s actions are appropriate and reasonable. All complaints about those inspectors will be forwarded to the appropriate licensing agency.
In discussions with the State Board of Professional Engineers, the commission understands that the use of trained personnel is an acceptable business practice. Therefore, an engineer may use other personnel that report to the engineer to the extent they wish to rely upon staff assistance. Ultimately, the decision to pass or fail an inspection rests with the individual fee inspector who is registered with the commission.
What are the code requirements for these required inspections?
The statewide residential building codes are the 2000 International Residential Code (IRC) and the 1999 National Electrical Code (NEC). These, however, may be amended in local jurisdictions if they have updated the code provisions. The code that applies to an unincorporated area is the same code adopted by the county seat. If the county seat has not adopted an updated version of the code, then the 2000 IRC applies.
Will the Texas Residential Construction Commission audit inspectors?
While the commission does not audit fee inspectors, builders and remodelers must keep inspection records. The commission randomly conducts audits on builders/remodelers once a year to verify inspection documentation ensuring that inspections were performed according to applicable codes and commission rules. However, if audit results show that a fee inspector repeatedly did not comply with the commission rules or apply the applicable code to construction projects inspected, the commission may withdraw the fee inspector’s registration.
What are the penalties if a builder does not obtain these inspections?
The commission can take disciplinary action against a builder or remodeler who fails to comply with the inspection requirements. It is the builder and remodeler’s responsibility to secure the three required inspections for qualified residential construction projects in unincorporated areas or areas not subject to municipal inspections.
FAQ - Building Codes
Are there statewide building codes or building standards?
The commission develops and maintains building and performance standards for residential construction in Texas. These standards are not the same as a building code. A building code dictates how a builder must build a home. The building and performance standards spell out how a home must perform after it is built. The commission-adopted building and performance standards apply to residential construction that begins on or after June 1, 2005. Residential construction completed before June 1, 2005, is governed by the standards applicable to the project at the time of the construction. The commission-adopted standards include compliance with the International Residential Code (IRC) and the National Electrical Code (NEC).
How will these new standards impact city codes or the International Residential Code (IRC)?
They won’t. The commission-adopted standards are not Codes. Codes dictate how a builder must build a home. The building and performance standards spell out how a home must perform after it is built. The performance standards offer all Texans the promise that their newly purchased home will remain structurally sound for years to come. Municipalities frequently adopt a version of the IRC for construction within their city. Builders who build within those cities still must comply with the city code requirements. Builders who build outside a city will have to comply with the version of the IRC that the commission-adopted standards require.
FAQ - Third-Party Inspectors
How do I register as a third-party inspector with the commission?
To apply to become a registered third-party inspector, you must submit a completed Third-Party Inspector Registration application form and pay a $50 registration fee.
Who performs the inspections?
Neutral third-party inspectors perform the state-sponsored inspections. These inspectors work on a contract basis and are not state employees. The inspectors must meet certain qualifications and pay a $50 registration fee. They also must complete commission-developed training before conducting inspections on the commission’s behalf.
Are the inspectors state employees?
No, they are not. Inspectors are private, independent contractors who receive a fee for performing inspections. Their independence ensures that third-party inspectors are neutral, giving equal consideration to both homeowner and home builder or remodeler.
Will inspectors be certified/qualified?
Yes. The commission uses three types of inspectors. Each type must meet certain requirements and complete commission-developed training before they can perform an inspection on the commission’s behalf. A third-party inspector for workmanship and materials issues must have a minimum of three years experience in residential construction and be certified as an International Code Council "residential combination inspector." A third-party inspector for structural issues must be a state-licensed professional engineer or an approved architect and have a minimum of five years of experience in residential construction. A third-party inspector who is qualified to conduct an inspection of both structural issues and unrelated workmanship and materials issues must be ICC combination certified and meet the requirements of a structural inspector.
Do the parties have to accept the third-party inspector the commission assigns?
Both the homeowner and builder have the right to "strike" one commission-assigned inspector. This means that if the commission assigns an inspector you think cannot act without bias, you can object and the commission will assign a different inspector. Again, each party has the right to object once.
How soon will the third-party inspector issue a recommendation?
After an inspector is assigned, he will contact the homeowner and the builder to set up an inspection. If the only alleged defects are workmanship and materials related, the inspector should issue his report not later than 30 days after he receives the assignment from the commission. If the dispute involves structural defects the third-party inspector should issue his report no later than 60 days after he receives the assignment from the commission. However, either the third-party inspector or a party to the dispute can request additional time in accordance with commission rules, if needed.
Must the parties accept the third-party inspector's recommendation?
No. Either party may appeal the recommendation on or before the 15th day after the date the inspector issues a report. A three-member panel of state inspectors (commission employees) considers the appeals. The appeal panel reviews the third-party inspector’s recommendation and may either approve, reject, modify or remand the inspection to the third-party inspector for further action.
What compensation/fees are there for third-party inspections?
The fee paid to inspectors for issues involving workmanship and materials, including mechanical delivery systems issues, is $450, the fee paid for structural issues is $650 and the fee paid for a joint inspection is $800. There may be a greater fee if a licensed engineer or architect acting as a third-party inspector writes a repair plan for a structural defect.
How can I acquire a Residential Combination Inspector Card?
Contact the International Code Council at (800) 284-4406 or visit the ICC Web site for more information.
FAQ - Arbitrators
What is a Texas Residential Construction Commission certified arbitrator?
The commission maintains a list of certified arbitrators. These are experienced arbitrators who have submitted applications demonstrating to the commission that they meet the qualifications required by statute to be certified. This list can help the public identify arbitrators who have experience with residential construction disputes between homeowners and builders.
Are these arbitrators commission employees or do any type of commission work?
No, the commission only certifies that these arbitrators have certain qualifications and experience conducting arbitrations between homeowners and builders.
What is the process to become a certified arbitrator?
Anyone seeking to become a certified arbitrator must: submit a completed application form; provide evidence of a minimum of five years of experience conducting arbitrations between homeowners and builders involving construction defects; certify familiarity with the commission’s statutory warranties and building and performance standards; certify that they have not had a professional license or certification suspended or revoked in any jurisdiction; submit a list that includes any person registered as a builder or certified as a third-party inspector with whom the applicant has a direct or indirect personal or business relationship that could reasonably be considered to create a conflict of interest for that person in serving as an arbitrator in a dispute involving the person listed as a party or a witness.
After the commission receives an application, the commission will publish notice of the application in the Texas Register for 21 days in order to accept public comment. After the comment period, if the commission finds it to be in the public interest, the commission will register the arbitrator as a certified arbitrator.
In order for an arbitrator to renew an application, the arbitrator must provide proof of completion of at least five hours of approved continuing education.
Can someone who is not certified as a residential construction arbitrator by the commission still perform residential construction arbitrations?
There is nothing in law prohibiting parties from using an arbitrator who does not hold a commission-issued certificate.
FAQ - Miscellaneous
What is a "Texas Star Builder?"
Texas Star Builders are participants in a voluntary program for builders and remodelers offered by the commission. Star Builders demonstrate that their experience, education and professional commitment offers their customers a higher level of service than average. Star Builders must also offer at least three of the following enhanced building programs: a green building program; the Energy Star program; the Certified Aging-in-place Specialist program or the EasyLiving Home Certification program; a program of construction to greater standards than the commission’s warranty and building and performance standards; a private inspection program where at least three phases of construction are subjected to inspection; a foundation construction program requiring site-specific engineering, testing and documentation; a third-party warranty provided by a commission-approved third-party warranty company; a two-year warranty for all one-year workmanship and materials in addition to the two-year mechanical and delivery system warranties, the ten-year structural warranty and the ten-year warranty of habitability.
Are cities, title companies and banks required to verify that a building company is registered with the commission before allowing the builder to conduct business?
Law requires that cities check a builder or remodeler’s registration before issuing a permit for qualified projects. Although they are not required to do so, many entities, like banks and title companies, check to see if a builder is registered with the commission before conducting business with the builder.
How will a homeowner or a builder get more information on warranties and performance standards?
The commission-adopted limited warranties and building and performance standards — effective June 1, 2005 — apply to all home construction projects. The warranties and performance standards in effect at the time of construction are the ones that will govern a dispute between the homeowner and builder. Current standards are available on the commission Web site. If a homeowner or builder has a question about the warranties and building and performance standards applicable to a particular construction project built at some time in the past, they should contact the commission for guidance on how to identify the applicable standards.
What is the State Office of Administrative Hearings (SOAH) and how does it relate to the commission’s enforcement actions?
SOAH is an administrative body that acts like a court for disputes involving the commission. Disputes heard at SOAH are heard by an administrative law judge (ALJ). The law requires that an ALJ hear commission enforcement actions against builders/remodelers, arbitrators and third-party inspectors. After considering the evidence and arguments of all the parties, the administrative law judge issues a Proposal for Decision (PFD), which is a recommendation to the commission that includes findings of fact and conclusions of law based on the evidence presented to the ALJ. The commission may accept, modify, or vacate the PFD in a final order. The Respondent may appeal the commission’s final order to a Travis County district court.
What must be included in the summary of an arbitration award?
There is a form for filing an arbitration award summary. The summary must include the following:
• Names of parties;
• Names of parties' attorneys (if any);
• Arbitrator's name;
• Arbitration service company's name (if any);
• Fee charged to conduct arbitration;
• General discussion of each disputed issue;
• Arbitrator's determination (party that prevailed on each disputed issue and amount of any award); and
• Date of the award.
Does the commission have a mailing list?
Yes. Sign up for the email list to receive important commission updates.
Where can I find information in Spanish?
Visit the Espanol area of the Web site.
Are there job opportunities with the commission?
Visit the Employment area of the commission’s Web site for employment opportunities. In addition, the commission has an Internship program.
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